World Trade Organization Organisation Mondiale du Commerce Organización Mundial del Comercio

Singapore 15:

The WTO Secretariat report (WT/TPR/S/249, page 106, para 220) notes that India has set price preferences and reservations for domestic suppliers and central public sector enterprises (CPSEs) to achieve certain socio economic objectives. Could India describe the industry sectors where procurement is typically reserved and if there are any plans to liberalize these sectors?

Reply: 358 products belonging to respective industry sectors are reserved for procurements from micro and small enterprises (MSEs) by state/central ministries/departments/PSUs. There is no plan to liberalize this at present. The list of these items is available at the website link: http://www.dcmsme.gov.in/schemes/Listof358ItemsReserved.pdf.

Singapore 16:

Could India clarify if foreign suppliers are required to be incorporated in India before they can participate in government tenders?

Reply: Various norms for obtaining bids in respect of Central Government procurement are contained in Rule 149 to 154 of Chapter 6 of GFRs, 2005 subject to the condition laid down in individual contracts and to the provision of Rule 150(iv) of GFRs. However, there is no bar on participation of global firms incorporated outside India in central government procurement.

Singapore 17:

The WTO Secretariat report (WT/TPR/S/249, page 110, para 241) notes that in 2004, India initiated a National e Governance Plan. The Plan has been in use since 2006. Could India please clarify if there are any mandatory requirements for all procurement to be conducted through the Directorate General of Supplies and Disposal (DGSandD) portal? If not, what is the percentage of procurements that are being conducted through the electronic portal?

Reply: There is no such requirement. As per Rule 150 of the GFR, 2005, an organization having its own website should also publish all its advertised tender enquiries on the website and provide a link with NIC website. Procurements through electronic portal are not centralized and hence no such data is available.

Singapore 18:

With regard to WT/TPR/S/249, page 110, para 237, could India elaborate more on how these price variation clauses work and possibly provide some examples?

Reply: Price variation clause has been stated in details in clause viii of Rule 204 of GFR, 2005. General Financial Rules is available at the website http://finmin.nic.in/the_ministry/dept_
expenditure/GFRS/GFR2005.pdf.

Where the contracts are entered into with a price variation clause to take care of price fluctuations in the raw materials, while inviting the bid, a clearly defined price variation clause with base price applicable on a specific date for the particular raw material is indicated. For example, if price variation clause is allowed for an item having steel as a major input (specific quality of steel will be defined), in the tender/contract, it will be stated that variation in the price of steel of Rs 1000 or more per metric tonne over the base price of steel, the price variation clause will be made operational.

Telecommunications

Singapore 19:

We read with interest in the Secretariat report that India is in the process of drafting the New Telecom Policy 2011 (WT/TPR/S/249, page 157, para 120).  Under this new policy 2011, could India share if it has plans to fully liberalise the telecommunications market, particularly in the area of foreign equity limits. If so, can India also provide an envisaged timeline for full liberalisation?