Govt issues new domestic procurement norms for 49 steel products
Steel

Govt issues new domestic procurement norms for 49 steel products

Atmanirbhar Bharat took the next incremental step yesterday, as the government mandated the use of domestically manufactured metal and alloy items. Per this directive, locally made metal products should be preferred in public projects.

Such preference will be accorded to 49 domestically manufactured iron and steel products in public contracts. These products include:

  • Pipes

  • Railway coaches

  • Railway tracks

  • Containers

  • Rolling stock

  • Wires

  • Tables and household items

  • Tanks

In essence, this means that project managers need to revise their procurement norms. The norms apply to all central schemes. 

The norms will apply to procurement exceeding Rs 5 lakh for local body projects. The government has specified minimum local value addition ranging from 20% to 50%.

“Domestic” will be interpreted on the basis of whether a company is incorporated in India.

Imports are restricted from countries that preclude Indian companies from procurement processes. This could mean a retaliation against countries like China, where Indian companies have complained of unfair treatment. While the World Trade Agreement (WTO) guidelines could see this move as restrictive, India did not sign the public procurement agreement.

Procurement managers, including public ones like the Railways, have previously argued that domestic capacity in steel items is limited. Experts have repeatedly called for domestic capacity augmentation. More immediately, steel prices have been climbing steeply. Some experts say prices will continue to rise for a few months.

Atmanirbhar Bharat took the next incremental step yesterday, as the government mandated the use of domestically manufactured metal and alloy items. Per this directive, locally made metal products should be preferred in public projects.Such preference will be accorded to 49 domestically manufactured iron and steel products in public contracts. These products include:PipesRailway coachesRailway tracksContainersRolling stockWiresTables and household itemsTanksIn essence, this means that project managers need to revise their procurement norms. The norms apply to all central schemes. The norms will apply to procurement exceeding Rs 5 lakh for local body projects. The government has specified minimum local value addition ranging from 20% to 50%.“Domestic” will be interpreted on the basis of whether a company is incorporated in India.Imports are restricted from countries that preclude Indian companies from procurement processes. This could mean a retaliation against countries like China, where Indian companies have complained of unfair treatment. While the World Trade Agreement (WTO) guidelines could see this move as restrictive, India did not sign the public procurement agreement.Procurement managers, including public ones like the Railways, have previously argued that domestic capacity in steel items is limited. Experts have repeatedly called for domestic capacity augmentation. More immediately, steel prices have been climbing steeply. Some experts say prices will continue to rise for a few months.

Related Stories

Gold Stories

Next Story
Resources

Schindler named among Forbes’ World’s Best Employers 2026

Schindler has been named among Forbes’ World’s Best Employers 2026, a global ranking recognising companies for their workplace environments.Compiled by Forbes in partnership with Statista, the ranking is based on independent employee feedback, including whether employees would recommend their organisation to friends and family.The company said the recognition reflected its focus on creating a workplace where employees can develop their expertise and build careers. ..

Next Story
Infrastructure Urban

India needs an export-execution mindset: Vishesh Jain

Interview with Vishesh Jain, Founder & CEO, EximpleWhat gaps in India’s global trade ecosystem led you to build Eximple, and what problem did you see businesses struggling with most?Eximple came out of a problem that all three founders had seen from different choke points in the trade ecosystem. India has millions of MSMEs and manufacturers, and many of them can make products that are genuinely competitive on quality. Yet only a small fraction is able to build meaningful international businesses. In our experience, the gap is usually not manufacturing capability; it is the ability to exe..

Next Story
Building Material

Nuvoco reports 13.5% revenue growth in Q2 FY27

Nuvoco Vistas Corp. Ltd. reported consolidated revenue of Rs 27.9 billion for Q2 FY27, up 13.5% year on year. Cement sales volume rose 9% to 4.7 million tonnes (MMT), while EBITDA increased 11% to Rs 4.11 billion.The company said it began its cement operations in 2014 with a 2.3 MMT per annum (MMTPA) operation at Nimbol. It now aims to reach 35 MMTPA of cement capacity by FY28, nearly 15 times its initial capacity. Its portfolio spans cement, ready-mix concrete and modern building materials.On sustainability and cost efficiency, Nuvoco partnered with CleanMax for a 46.4 MW wind-solar hybrid re..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code