The "Make in India" (MII) initiative heavily influences public procurement. In order to boost domestic manufacturing, the government provides a purchase preference to local suppliers in government tenders.
What is Local Content?
Local Content refers to the amount of value added in India. To qualify as a Class-I local supplier, your goods/services must typically have at least 50% local content. Class-II suppliers require at least 20% local content.
Claiming the MII Preference
- Self-Declaration: For tenders valued under Rs. 10 Crores, a self-certification from the bidder is usually sufficient.
- Statutory Auditor Certificate: For tenders above Rs. 10 Crores, you must provide a certificate from the statutory auditor or cost auditor of your company.
Common Mistakes to Avoid
Many businesses incorrectly calculate their local content by including imported raw materials or failing to properly format their MII declaration. BidSarathi's document generation tools automatically produce compliant MII declarations tailored perfectly to each tender's format.
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