Govt exempts procurement of spare parts from OEMs from public procurement policy

The government’s public procurement policy announced in mid-May, which prohibited global tendering to source goods and services up to Rs 200 crore in order to promote domestic industries, is not applicable for procurement of spare parts from original equipment manufacturers, two officials said.

The clarification was issued on October 29 after several government concerns and public sector companies—particularly in energy, telecom, health and infrastructure sectors—faced difficulties in sourcing specific components domestically as they are available only with the original equipment manufacturers (OEMs) that are often foreign entities, the officials working for two economic ministries said requesting anonymity.