Ministry : Ministry of Steel (Not Applicable)
Part II-Section 3-Sub-Section (i)
Subject : Extra Ordinary
Analysis of the Gazette Notification
Based on the title and content, this is G.S.R. 213(E) – a key notification issued by India’s Ministry of Steel, published in the Gazette of India on 1 April 2025. It replaces the earlier “Domestically Manufactured Iron & Steel Products Policy” and introduces a revised framework to give preference to domestically made iron and steel products in government procurement. The notification details definitions, eligibility, procurement procedures, value-addition norms, and enforcement mechanisms.
Overview
The notification establishes a Domestic Manufactured Iron & Steel Products (DMI&SP) Preference Policy for government purchases. It aims to boost local steel production, ensure quality, and set clear criteria for domestic value addition. The policy applies to all central government departments, PSUs, and projects funded by the Government of India.
Key Points
- Policy Scope: Covers iron & steel products listed in Appendix A (flat-rolled, bars, tubes, rails, etc.) and capital goods in Appendix B used in steel manufacturing.
- Preference Mechanism: Government procurement must favor domestically manufactured products, subject to a maximum 50% net selling price margin over the lowest tender price (L1).
- Domestic Value Addition (DVA): Products must meet a minimum 50% DVA threshold, calculated as: [ \text{DVA} = \frac{\text{Total value} - \text{Imported content}}{\text{Total value}} \times 100\% ]
- Self-Certification: Bidders must submit Form-1, an affidavit confirming DVA compliance and legal responsibility for accuracy.
- Standing Committee: A committee under the Secretary (Steel) oversees implementation, grants waivers, and resolves disputes.
- Exclusions & Waivers: Waivers are allowed where specific steel grades are not domestically available or project demands cannot be met locally.
- Transparency & Reciprocity: The policy promotes reciprocal access for Indian exporters in markets that restrict Indian participation.
Summary
This notification reinforces India’s push for Atmanirbhar Steel by mandating that government agencies prioritize locally made iron and steel products. It sets stringent domestic value addition norms (min. 50%), introduces a robust affidavit and verification system, and creates a grievance redressal mechanism. The policy is in effect for five years and is monitored by the Ministry of Steel. Its implementation is expected to strengthen domestic steel manufacturers, reduce import dependency, and ensure fair competition in public procurement.
