EGoM norms against WTO

The recent decision by an empowered group of ministers (EGoM) to make sourcing power equipment from domestic manufacturers mandatory might be in violation of global trading 'anti competition' norms under the World Trade Organization (WTO). According to the new standard bidding documents (SBDs), approved by the EGoM, for 4,000 MW capacity UMPPs, the government has made it mandatory for power producers to purchase equipment from domestic manufacturers. Though such a rule might amount to violation of India's commitment to global trading rules, it will also protect the interest of Indian players like BHEL, L&T and Bharat Forge, etc.