Domestic medical device makers seek 15% price preference in public tenders

The domestic medical devices industry representatives have written to the Department of Industrial Policy and Promotion (DIPP) as well as the Union Ministry of Health and Family Welfare, seeking a 10-15 per cent price preference for local device makers, while participating in public tenders. This, the industry feels, would boost the Make In India initiative. In a 2017 order, the DIPP had done away with the provision of price preference in the Public Procurement Order (PPO), and introduced a provision of the 20 per cent purchase preference in tenders.

The PPO states that if the lowest (L1) bid is not from a local supplier, 50 per cent of the order quantity shall be awarded to L1.
In that case, the lowest bidder among the local suppliers is invited to match the L1 price for the remaining half of the order. This is subject to the fact that the local supplier's price falls within 20 per cent margin of purchase preference.