What Are The New Government Procurement Norms For 49 Steel Products

Steel is one of the most demanded raw materials worldwide. Steel has been a significant material for various sectors, ranging from construction, buildings to ships, railway lines & coaches. Every year the demand for steel increases by 5 percent. As for India, over 3.13 million tonnes of steel were produced. Furthermore, the leading giants like Tata Steel and Jindal Industry already influence the market to great extent. Due to their long woven history. There are many more businesses moving forward to get involved in the steel industry. Companies are finding ways to get raw materials faster and more efficiently. As a result, steel procurement services are now available online for businesses. Now, companies get quick quotations and easier means to attain their materials.

Furthermore, in the process of developing India and extending the “Make In India” initiative. The government has placed a new procurement policy for 49 domestically manufactured steel products in public contracts, including:

1. Tubes,

2. Pipes

3. Railway tracks

4. Wires

5. Tables

6. Household items

7. Tanks

8. Containers

9. Railway coaches

10. Rolling stock and many more.

The government’s focus is to boost the economic factors for the domestic manufacturers of steel. By increasing the demand for domestically manufactured steel. Also, giving other domestic businesses to work efficiently and aid their service expansion. This decision has several benefits for steel procurement agencies by getting more business from both buyers as well as sellers.

Government Procurement Norms For 49 Steel Products For Public Contracts

To conduct the steel procurement process, the government has laid down few norms to be followed:

1. The Steel Procurement companies have to follow standard procurement procedures instructed by the Ministry of Finance and CVC (The Central Vigilance Commission) while giving preference to domestically manufactured steel products.

2. The steel procurement should qualify the criteria of having an estimated minimum value of 50 Crores. To adhere to the domestic value addition of 20% to 50%.

3. The smaller supply, selling, or buying agencies of the domestic steel product manufacturers are eligible to bid on behalf of them. Given that they clear all the criteria stated by the government.

4. Domestic manufacturers, as well as the companies, should provide an Affidavit of self-certification clarifying that the domestically manufactured steel products are used based on the prescribed value addition to the procuring Government Agencies.

These norms will surely have a huge impact on the steel industry. As new and upcoming manufacturing companies get more opportunities to grow and expand their businesses. Domestically manufactured also gains more potential market by increasing supply for the public sector’s demands. Further expansions can also lead to an increase in the supply of quality products.

OfBusiness understands the significance of this opportunity. Thus, we provide you the best steel procurement services. In just a few taps you get a wide selection of steels as per your requirements. Furthermore, we provide easy and fast quotations to save your time and provide a hassle-free experience. We offer our services all across India with the best-in-class materials

So what is making you wait? Go get your steel procurement now!!