The revised policy aims to ensure that steel products used in India's public infrastructure projects are sourced only from domestic producers. Accordingly, steel products to be used in public procurement must be melted and cast with domestic raw materials in India. This will ensure that imported steel is minimally processed and used in public projects.
The new rules apply to all government ministries and agencies and projects funded by them. While the threshold for procurement is set at ₹5 lakh, the policy also stipulates certain conditions for foreign companies to participate in Indian government tenders. Foreign entities whose home country maintains restrictive trade practices against Indian companies will not be able to bid for public contracts. However, some steel products and special grades that cannot be produced locally will be exempted from this restriction.
Industry experts see the change as an important step towards India's vision of 'Atmanirbhar Bharat' (Self-Sufficient India). The policy is expected to encourage domestic production, increase employment opportunities and improve the global competitiveness of Indian steelmakers.
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