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On March 15, 2018, the Department of Pharmaceuticals (DoP), Ministry of Chemicals and Fertilizers, released a draft guideline for implementation of the provisions of the Public Procurement (Preference to Make in India) Order (PPO), 2017, with respect to public procurement of medical devices10.
Earlier, the Department of Industrial Policy and Promotion (DIPP) had issued PPO, 2017 and to facilitate its implementation, it had identified DoP as the Nodal Department for implementing the provisions of the PPO 2017 relating to goods & services related to pharmaceutical sector. The provisions of Para 3, Para 5 and Para 9 of PPO, 2017 are related to pharmaceutical sector.
Para 3 of PPO, 2017, makes it mandatory for procuring entities to give purchase preference to local suppliers,
Para 5 of PPO, 2017, empowers Nodal Ministry to prescribe percentage and the manner of calculation of minimum local content in respect of any particular item relating to Pharmaceutical sector, and
Para 9 of PPO, 2017, deals with verification of local content.
Therefore, DoP has, now, issued the guidelines for implementation of the provisions of the PPO, 2017, with respect to public procurement of medical devices -
Percentage of Minimum Local Content
Medical Device Industry (MDI) is a multiproduct industry responsible for provisioning of wide variety of crucial medical products ranging from simple tongue depressors & glucometer strips to large radiological & electronic medical equipment. The medical devices industry can be broadly classified as consisting of
Medical disposables and consumables;
Medical electronics, hospital equipment, surgical instruments;
Implants; and
In-Vitro Devices/Diagnostic Reagents.
Individually, there are around 5000 different kinds of medical devices and it is not practical to prescribe the local content and percentage of preference in domestic procurement for each medical device. Moreover, DoP is in the process of collecting accurate and reliable data regarding:
Total capacity and production of various categories of medical devices in India;
The level of competition in the market in different segment of medical devices
The processes involved in the manufacture of medical devices for prescribing the percentage of minimum local content for each category of medical devices, for purchase of supplies only from local suppliers where the estimated value of procurement is Rs. 50 lakhs or less and for determining the manner of calculation of local content in the medical devices to be procured by the public agencies. |
