Monday, March 08, 2021

Make in India tenders: AAI in talks with DPIIT on procurement delay due to lack of eligible bidders

The Airports Authority of India (AAI) is in talks with the Department for Promotion of Industry and Internal Trade and the department of expenditure on issues of Make in India tenders, CNBC-TV18 has learnt.

Since May 2020, the government norms allow only domestic companies to participate in tenders worth up to Rs 200 crore. This has led to delay in procurement of airport equipment for AAI as either there are no indigenous manufacturers in some cases, or there are few participants with unsatisfactory products.

While the ministry of civil aviation had already issued a letter granting exemption to certain items of Air and navigation services, planning, technology and engineering departments in May 2020, AAI is now working to increase the list of exempted items.

As part of the ongoing discussions between DPIIT and AAI, the former has also sought a 3-year plan for domestic manufacturing and development of such equipment of up to Rs 200 crore, which are not currently indigenously sourced.

"As part of a recent meeting, DPIIT was also made aware that there are no indigenous manufacturers of ANS equipment," an official said.

"The response to the upcoming tenders will be assessed. If there are still no qualified bidders or if the product quality is not satisfactory, then permission will be sought from expenditure department and DPIIT to import such equipments," another official added.

08/03/21 CNBC TV18

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