Publishing of Domestically Manufactured Iron and Steel Product DMISP Policy 2025 in the Extra Ordinary Gazette of India regarding

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-26052025-263378 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 298] NEW DELHI, MONDAY, MAY 26, 2025/JYAISTHA 5, 1947 MINISTRY OF STEEL NOTIFICATION New Delhi, the 26th May, 2025 G.S.R. 341(E). — In supersession of earlier Domestically Manufactured Iron & Steel Products Policy, the revised Domestically Manufactured Iron & Steel Products Policy-2025 for providing preference to Domestically Manufactured Iron & Steel Products in Government procurement is hereby published for general information. POLICY FOR PROVIDING PREFERENCE TO DOMESTICALLY MANUFACTURED IRON & STEEL PRODUCTS IN GOVERNMENT PROCUREMENT- REVISED, 2025 1. Background 1.1. This policy provides preference for Domestically Manufactured Iron and Steel Products (DMI&SP) in Government procurement. 1.2. The policy applies to procurement of iron & steel products notified in Appendix A. In Appendix B, the minimum domestic content and an exempted list of capital goods for manufacturing iron & steel products which can be imported have been listed. Appendix C contains the policy for promoting the procurement of technology from the indigenous technology suppliers. 2. Definitions 2.1. Bidder may be a domestic/ foreign manufacturer of iron & steel or their selling agents/ authorized distributors/authorized dealers/ authorized supply houses or any other company engaged in the bidding of projects funded by Government agencies. 2.2. Domestically Manufactured Iron & Steel Products are those iron and steel products that are manufactured by entities that are registered and established in India, including in Special Economic Zones (SEZs). 2.3. Domestic Manufacturer is a manufacturer of iron & steel products conforming to guidelines in section 7 and the definition of ‘manufacturer' as per the Central Excise Act. 2.4. Domestic value addition means the amount of value added in India which shall be the total value of the item to be procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all custom duties) as a proportion of the total value of the item to be procured, in percent. The ‘domestic value addition' definition shall be in line with the DPIIT guidelines and shall be suitably amended in case of any changes by DPIIT in the future. For the purpose of this policy document, domestic value addition and local content have been used interchangeably. % Domestic value addition = {Total value of the item to be procured (excluding net domestic indirect taxes) – The value of imported content in the item (including all customs duties)} ------------------------------------------------------------------------------------------------X 100% {Total value of the item to be procured} 2.5. Finished Steel shall mean flat and long products, which can be subsequently processed into manufactured items. 2.6. Government for the purpose of the Policy means Government of India. 2.7. Government agencies include Government PSUs, Societies, Trusts, and Statutory bodies set up by the Government of India. 2.8. Indigenous Technology: A technology shall be deemed to be Indigenous technology if, at least 51% of the entity's equity is held by Indian residents and the IPR is owned or co-owned by an Indian entity or licensed exclusively to them and the core engineering R&D, and project execution capabilities reside in India. 2.9. L1 means the lowest tender or the lowest bid or the lowest quotation received in a tender, bidding process, or other procurement solicitation as adjudged in the evaluation process as per the tender or other procurement solicitation. 2.10. MoS shall mean Ministry of Steel, Government of India. 2.11. Margin of purchase preference means the maximum extent to which the price quoted by a domestic supplier may be above L1 for the purpose of purchase preference. In the case of DMI&SP policy, the margin of purchase preference shall be 20% for items in Appendix B. 2.12. Melt & Pour is defined as the steel that has been produced in a steel-making furnace and poured into its first solid shape. The location where this process takes place is called the country of melt and pour (COM). The COM is the original location where crude steel is first produced in a liquid state and poured into its first solid shape. The first solid shape can be a semi-finished product, like a slab, billet, ingot, or a finished steel mill product. 2.13. Net Selling Price shall be the invoiced price excluding net domestic taxes and duties. 2.14. Semi-Finished Steel shall mean Ingots, billets, blooms, and slabs, which can be subsequently processed into finished steel. 3. Exclusions 3.1. Waivers may be granted by the Ministry of Steel to all such Government procurements subject to the below conditions: 3.1.1. Where specific grades of steel are not manufactured in the country, or 3.1.2. Where the quantities as per the demand of the project cannot be met through domestic sources. 3.2. Exemption requests shall be submitted to the Standing Committee along with sufficient proof of unavailability of iron & steel products domestically. 4. Standing Committee 4.1. A Standing Committee chaired by the Secretary (Steel), shall oversee the implementation of the policy. 4.2. The Committee shall comprise of experts drawn from Industry/Industry Association/Government Institution or Body/Ministry of Steel. The said Committee in MoS shall have the mandate for the following: 4.2.1. Monitor the implementation of the policy. 4.2.2. Review and notify the list of Iron & Steel products, the domestic content requirement criteria and policy directives as mentioned in Appendix A, Appendix B and Appendix C. 4.2.3. Issue necessary clarifications for implementation of the policy including grant of exclusions to procuring agencies as per Para 3. 4.2.4. Constitute a grievance redressal committee for preliminary examination of complaints related to implementation of this policy. 4.2.5. Issue directions for suitable action to Ministries/Departments concerned in case of non-compliance with this policy by the procuring agency and advise. 4.3. Wherever a procuring entity concludes that an unreasonably high price has been quoted by the sole bidder/manufacturer, the matter may be referred to the Committee. In such cases, the procuring entity would be required to substantiate its case with complete and thorough documentation. 4.4. Specifying foreign certifications/unreasonable technical specifications in bid document is a restrictive and discriminatory practice against local suppliers. If foreign certification is required to be stipulated because of non-availability of Indian Standards and/or for any other reason, the same shall be done only after written approval of the Committee. 5. Applicability 5.1. The policy applies to every Ministry or Department of Government and all agencies/entities under their administrative control and to projects funded by these agencies for the purchase of iron & steel products for government projects. All Central Sector Schemes (CS)/Centrally Sponsored Schemes (CSS) for which procurement is made by States and Local Bodies, come within the purview of this Policy if that project/ scheme is fully/partly funded by the Government of India. 5.2. The policy applies to public sector steel manufacturers and agencies/entities under their administrative control for purchase of capital goods (Appendix-B) for manufacturing iron & steel products. 5.3. Appendix-B contains the exemption list of capital goods used in manufacturing iron & steel products which can be imported, and the minimum domestic content requirement for respective packages. The domestic value addition for Capital Goods, as indicated, is subject to change; for example, if some capital goods components can be manufactured in the country, the domestic value addition percentage may go up. 5.4. A purchase preference of 20% is applicable for capital goods used in steel manufacturing. For example, if the lowest bidder (L1) for an importable capital good is a foreign company with a quoted price of INR 100 crores for the product package, under the policy, procurement preference of 20% will be applicable to a domestic supplier of the same capital good. 5.5. Appendix-C contains directives and methodology for steelmaking CPSEs to procure from indigenous technology suppliers. 5.6. The policy shall apply to projects and non-projects where the total procurement value of iron and steel products (Appendix-A) in a contract is greater than Rs. 5 lakhs, on itemised basis. 5.7. No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of iron and steel products (Appendix-A of the DMI&SP Policy). No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of Capital Goods for manufacturing iron & steel products (Appendix-B of the DMI&SP Policy) having estimated value up to Rs. 200 Crore except with the approval of competent authority as designated by Department of Expenditure. 5.8. The policy applies to the purchase of iron & steel products by private agencies for fulfilling an EPC contract and/or any other requirement of a Ministry or Department of Government or their PSUs. 6. Tender procedure for procurement 6.1. Procuring agencies shall follow standard procurement procedures, in accordance with instructions of the Ministry of Finance and CVC while adhering to DMI&SP policy. 6.2. The tender document, for procurement of both Goods as well as for EPC contracts, should explicitly outline the qualification criteria for adherence to the requirement as mentioned in Appendix A and Appendix B. 6.3. Domestic manufacturers of products under Appendix-A and Appendix-B shall self- certify the local content as per form-1 placed in the policy, at the time of bidding. 6.4. Bidders who are selling agents/authorized distributors/authorized dealers/authorized supply houses of the domestic manufacturers of iron & steel products, covered by Appendix-A, are eligible to bid with self- certification on behalf of the domestic manufacturers under the policy, subject to the bidder furnishing an authorisation certificate issued by the domestic manufacturer at the time of delivery. 6.5. For products covered under Appendix B of the DMI&SP policy, the bidder shall furnish certification issued by the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing cost accountant or practicing chartered accountant (in respect of suppliers other than companies) declaring that the capital goods to be used in iron & steel industry are domestically manufactured in terms of the domestic value addition prescribed. 6.6. If Indian suppliers of an item are not allowed to participate and/or compete in procurement by any foreign government, due to restrictive tender conditions which have direct or indirect effect of barring Indian companies such as registration in the procuring country, execution of projects of specific value in the procuring country etc., it shall provide such details to the procuring entities for appropriate reciprocal action. 6.7. Entities of countries that have been identified by the Ministry of Steel as not allowing Indian companies to participate in their Government procurement for any item related to the Ministry of Steel shall not be allowed to participate in Government procurement in India for all items related to Ministry of Steel, except for the list of items published by Ministry of Steel permitting their participation. 6.8. The stipulation above shall be part of all tenders including those on GeM portal invited by the Central Government procuring entities. 6.9. In case restrictive or discriminatory conditions against domestic suppliers are included in bid documents, an inquiry shall be conducted by the Administrative Department undertaking the procurement (including procurement by any entity under its administrative control) to fix responsibility for the same. Thereafter, appropriate action, administrative or otherwise, shall be taken against erring officials of procurement entities under relevant provisions. Intimation on all such action shall be sent to the Standing Committee under the DMI&SP policy. 6.10. A supplier debarred by any procuring entity for violation of this Order shall not be eligible for preference under this Order for procurement by any other procuring entity for the duration of the debarment. The debarment for such other procuring entities shall take effect prospectively from the date on which it comes to the notice of other procurement entities. 6.11. In case, the matter is referred to the Ministry of Steel, the grievance redressal committee set up under the MoS shall dispose of the complaint within 4 weeks of its reference and receipt of all documents from the bidder after taking into consideration, the view of the Government Agency. The bidder shall be required to furnish the necessary documentation in support of domestic value addition claimed in iron & steel products to the grievance redressal committee under MoS within 2 weeks of the reference of the matter. 6.12. Procuring agency shall define the penalties, in case of a wrong declaration by the bidder of the prescribed domestic value addition, in the tender document. The penalties may include forfeiting of the EMD, other financial penalties, and blacklisting of such manufacturer/service provider etc., in terms of extant rules. 7. Implementation monitoring by the Ministry of Steel 7.1. The policy provisions shall be applicable for 5 years from the date of publication and may further be extended at the discretion of the Ministry of Steel. 7.2. MoS shall be the nodal ministry to monitor the implementation of the policy. 7.3. Agencies covered under DMI&SP policy shall send declaration on a quarterly basis indicating the extent of compliance to the policy and reasons for non-compliance thereof, during the preceding financial year. Appendix-A List of iron and steel products which can only be procured from domestic sources +-----+-----------------------------------------------------------------------------+----------+-------------+ | Sl. | Iron & Steel Products | HS code | Condition | | No. | | | | +=====+=============================================================================+==========+=============+ | 1 | Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or | 7208 | Melt & Pour | | | more, hot rolled, not clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 2 | Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or | 7209 | Melt & Pour | | | more, cold rolled (cold-reduced), not clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 3 | Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or | 7210 | Melt & Pour | | | more, clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 4 | Flat-rolled products of iron or non-alloy steel, of a width of less than | 7211 | Melt & Pour | | | 600 mm, not clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 5 | Flat-rolled products of iron or non-alloy steel, of a width of less than | 7212 | Melt & Pour | | | 600 mm, clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 6 | Bars and rods, hot-rolled, in irregularly wound coils, of iron or non- | 7213 | Melt & Pour | | | alloy steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 7 | Other bars and rods of iron or non-alloy steel, not further worked | 7214 | Melt & Pour | | | than forged, hot rolled, hot-drawn or hot-extruded, but including those | | | | | twisted after rolling | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 8 | Other bars and rods of iron or non-alloy steel | 7215 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 9 | Angles, shapes and sections of iron or non-alloy steel | 7216 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 10 | Wire of iron or non-alloy steel | 7217 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 11 | Flat-rolled products of stainless steel, of a width of 600 mm or more | 7219 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 12 | Flat-rolled products of stainless steel, of a width of less than 600 mm | 7220 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 13 | Other bars and rods of stainless steel; angles, shapes and sections of | 7222 | Melt & Pour | | | stainless steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 14 | Wire of other alloy steel | 7229 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 15 | Rails, railway or tramway track construction material of iron or steel | 7302 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 16 | Tubes, pipes and hollow profiles, of cast iron | 7303 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 17 | Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) | 7304 | Melt & Pour | | | or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 18 | Other tubes and pipes (for example, welded, riveted or similarly closed), | 7305 | Melt & Pour | | | having circular cross-sections, the external diameter of which exceeds | | | | | 406.4 mm, of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 19 | Other tubes, pipes and hollow profiles (for example, open seam or | 7306 | Melt & Pour | | | welded, riveted or similarly closed), of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 20 | Tube or pipe fittings (for example, connectors/couplings, elbow | 7307 | Melt & Pour | | | sleeves), of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 21 | Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel | 7221 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 22 | Wire of stainless steel | 7223 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 23 | Flat-rolled products of other alloy steel, of a width of 600 mm or | 7225 | Melt & Pour | | | more, including electrical steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 24 | Flat-rolled products of other alloy steel, of a width of less than 600 | 7226 | Melt & Pour | | | mm, including electrical steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 25 | Bars and rods, hot-rolled, in irregularly wound coils, of other alloy | 7227 | Melt & Pour | | | steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 26 | Other bars and rods of other alloy steel; angles, shapes and sections, of | 7228 | Melt & Pour | | | other alloy steel; hollow drill bars and rods, of alloy or non alloy | | | | | steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 27 | Sheet piling of iron or steel, whether or not drilled, punched or made | 7301 | Melt & Pour | | | from assembled elements; welded angles, shapes and sections, of iron | | | | | or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 28 | Structures (excluding prefabricated buildings of heading 9406) and | 7308 | Melt & Pour | | | parts of structures | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 29 | Reservoirs, tanks, vats and similar containers for any material (other | 7309 | Melt & Pour | | | than compressed or liquefied gas), of iron or steel, of a capacity | | | | | exceeding 300 | | | | | whether or not lined or heat insulated, but not fitted with mechanical or | | | | | Thermal equipment | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 30 | Tanks, casks, drums, cans, boxes and similar containers, for any | 7310 | Melt & Pour | | | material(other than compressed or liquefied gas), of iron or steel, of | | | | | a capacity not exceeding 300L,whether or not lined or heat-insulated, but | | | | | not fitted with mechanical or thermal equipment | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 31 | Containers for compressed or liquefied gas, of iron or steel | 7311 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 32 | Stranded wire, ropes, cables, plaited bands, slings and the like, of | 7312 | Melt & Pour | | | iron or steel, not electrically insulated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 33 | Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or | 7313 | Melt & Pour | | | not, and loosely twisted double wire, of a kind used for fencing, of | | | | | iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 34 | Grill, netting and fencing, of iron or steel wire; expanded metal of | 7314 | Melt & Pour | | | iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 35 | Chain and parts thereof, of iron or steel | 7315 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 36 | Anchors, grapnels and parts thereof, of iron or steel | 7316 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 37 | Articles of iron and steel | 7317 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 38 | Articles of iron and steel | 7318 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 39 | Articles of iron and steel | 7319 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 40 | Springs and leaves for springs, of iron or steel | 7320 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 41 | Stoves,ranges,grates,cookers(includingthosewithsubsidiaryboilersforcent | 7321 | Melt & Pour | | | ral heating), barbecues, braziers, gas-rings, plate warmers and similar | | | | | non- electric domestic appliances, and parts thereof, of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 42 | Radiators for central heating, not electrically heated, and parts | 7322 | Melt & Pour | | | thereof, of iron or steel; air heaters and hot air distributors, not | | | | | electrically heated, incorporating a motor-driven fan or blower, and | | | | | parts thereof, of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 43 | Tables and similar house hold articles and parts thereof, of iron or steel | 7323 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 44 | Sanitary ware and parts thereof, of iron or steel | 7324 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 45 | Other cast articles of iron or steel | 7325 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 46 | Electrical steel and other articles of iron or steel | 7326 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 47 | Railway or tramway passenger coaches, not self-propelled | 8605 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 48 | Railway or tramway goods vans and wagons, not self-propelled | 8606 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 49 | Parts of railway or tramway locomotives or rolling-stock; such as | 8607 | Melt & Pour | | | bogies, bissel-bogies, axles and forged wheels, and parts thereof | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ Appendix- В Indicative list of Capital Goods (non-exhaustive) which can be imported for Manufacturing Iron & Steel products, and minimum Domestic content applicable for the package 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4. Extract Appendix-B table page by page, identifying columns and rows. 6. Extract Appendix-C text. 7. Extract Form-1 text. Looks achievable. I will proceed with the extraction and table formatting based on this plan.REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-26052025-263378 EXTRAORDINARY PART II—Section 3—Sub-section (i) PUBLISHED BY AUTHORITY No. 298] NEW DELHI, MONDAY, MAY 26, 2025/JYAISTHA 5, 1947 MINISTRY OF STEEL NOTIFICATION New Delhi, the 26th May, 2025 G.S.R. 341(E). — In supersession of earlier Domestically Manufactured Iron & Steel Products Policy, the revised Domestically Manufactured Iron & Steel Products Policy-2025 for providing preference to Domestically Manufactured Iron & Steel Products in Government procurement is hereby published for general information. POLICY FOR PROVIDING PREFERENCE TO DOMESTICALLY MANUFACTURED IRON & STEEL PRODUCTS IN GOVERNMENT PROCUREMENT- REVISED, 2025 1. Background 1.1. This policy provides preference for Domestically Manufactured Iron and Steel Products (DMI&SP) in Government procurement. 1.2. The policy applies to procurement of iron & steel products notified in Appendix A. In Appendix B, the minimum domestic content and an exempted list of capital goods for manufacturing iron & steel products which can be imported have been listed. Appendix C contains the policy for promoting the procurement of technology from the indigenous technology suppliers. 2. Definitions 2.1. Bidder may be a domestic/ foreign manufacturer of iron & steel or their selling agents/ authorized distributors/authorized dealers/ authorized supply houses or any other company engaged in the bidding of projects funded by Government agencies. 2.2. Domestically Manufactured Iron & Steel Products are those iron and steel products that are manufactured by entities that are registered and established in India, including in Special Economic Zones (SEZs). 2.3. Domestic Manufacturer is a manufacturer of iron & steel products conforming to guidelines in section 7 and the definition of ‘manufacturer' as per the Central Excise Act. 2.4. Domestic value addition means the amount of value added in India which shall be the total value of the item to be procured (excluding net domestic indirect taxes) minus the value of imported content in the item (including all custom duties) as a proportion of the total value of the item to be procured, in percent. The ‘domestic value addition' definition shall be in line with the DPIIT guidelines and shall be suitably amended in case of any changes by DPIIT in the future. For the purpose of this policy document, domestic value addition and local content have been used interchangeably. % Domestic value addition = {Total value of the item to be procured (excluding net domestic indirect taxes) – The value of imported content in the item (including all customs duties)} ------------------------------------------------------------------------------------------------X 100% {Total value of the item to be procured} 2.5. Finished Steel shall mean flat and long products, which can be subsequently processed into manufactured items. 2.6. Government for the purpose of the Policy means Government of India. 2.7. Government agencies include Government PSUs, Societies, Trusts, and Statutory bodies set up by the Government of India. 2.8. Indigenous Technology: A technology shall be deemed to be Indigenous technology if, at least 51% of the entity's equity is held by Indian residents and the IPR is owned or co-owned by an Indian entity or licensed exclusively to them and the core engineering R&D, and project execution capabilities reside in India. 2.9. L1 means the lowest tender or the lowest bid or the lowest quotation received in a tender, bidding process, or other procurement solicitation as adjudged in the evaluation process as per the tender or other procurement solicitation. 2.10. MoS shall mean Ministry of Steel, Government of India. 2.11. Margin of purchase preference means the maximum extent to which the price quoted by a domestic supplier may be above L1 for the purpose of purchase preference. In the case of DMI&SP policy, the margin of purchase preference shall be 20% for items in Appendix B. 2.12. Melt & Pour is defined as the steel that has been produced in a steel-making furnace and poured into its first solid shape. The location where this process takes place is called the country of melt and pour (COM). The COM is the original location where crude steel is first produced in a liquid state and poured into its first solid shape. The first solid shape can be a semi-finished product, like a slab, billet, ingot, or a finished steel mill product. 2.13. Net Selling Price shall be the invoiced price excluding net domestic taxes and duties. 2.14. Semi-Finished Steel shall mean Ingots, billets, blooms, and slabs, which can be subsequently processed into finished steel. 3. Exclusions 3.1. Waivers may be granted by the Ministry of Steel to all such Government procurements subject to the below conditions: 3.1.1. Where specific grades of steel are not manufactured in the country, or 3.1.2. Where the quantities as per the demand of the project cannot be met through domestic sources. 3.2. Exemption requests shall be submitted to the Standing Committee along with sufficient proof of unavailability of iron & steel products domestically. 4. Standing Committee 4.1. A Standing Committee chaired by the Secretary (Steel), shall oversee the implementation of the policy. 4.2. The Committee shall comprise of experts drawn from Industry/Industry Association/Government Institution or Body/Ministry of Steel. The said Committee in MoS shall have the mandate for the following: 4.2.1. Monitor the implementation of the policy. 4.2.2. Review and notify the list of Iron & Steel products, the domestic content requirement criteria and policy directives as mentioned in Appendix A, Appendix B and Appendix C. 4.2.3. Issue necessary clarifications for implementation of the policy including grant of exclusions to procuring agencies as per Para 3. 4.2.4. Constitute a grievance redressal committee for preliminary examination of complaints related to implementation of this policy. 4.2.5. Issue directions for suitable action to Ministries/Departments concerned in case of non-compliance with this policy by the procuring agency and advise. 4.3. Wherever a procuring entity concludes that an unreasonably high price has been quoted by the sole bidder/manufacturer, the matter may be referred to the Committee. In such cases, the procuring entity would be required to substantiate its case with complete and thorough documentation. 4.4. Specifying foreign certifications/unreasonable technical specifications in bid document is a restrictive and discriminatory practice against local suppliers. If foreign certification is required to be stipulated because of non-availability of Indian Standards and/or for any other reason, the same shall be done only after written approval of the Committee. 5. Applicability 5.1. The policy applies to every Ministry or Department of Government and all agencies/entities under their administrative control and to projects funded by these agencies for the purchase of iron & steel products for government projects. All Central Sector Schemes (CS)/Centrally Sponsored Schemes (CSS) for which procurement is made by States and Local Bodies, come within the purview of this Policy if that project/ scheme is fully/partly funded by the Government of India. 5.2. The policy applies to public sector steel manufacturers and agencies/entities under their administrative control for purchase of capital goods (Appendix-B) for manufacturing iron & steel products. 5.3. Appendix-B contains the exemption list of capital goods used in manufacturing iron & steel products which can be imported, and the minimum domestic content requirement for respective packages. The domestic value addition for Capital Goods, as indicated, is subject to change; for example, if some capital goods components can be manufactured in the country, the domestic value addition percentage may go up. 5.4. A purchase preference of 20% is applicable for capital goods used in steel manufacturing. For example, if the lowest bidder (L1) for an importable capital good is a foreign company with a quoted price of INR 100 crores for the product package, under the policy, procurement preference of 20% will be applicable to a domestic supplier of the same capital good. 5.5. Appendix-C contains directives and methodology for steelmaking CPSEs to procure from indigenous technology suppliers. 5.6. The policy shall apply to projects and non-projects where the total procurement value of iron and steel products (Appendix-A) in a contract is greater than Rs. 5 lakhs, on itemised basis. 5.7. No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of iron and steel products (Appendix-A of the DMI&SP Policy). No Global Tender Enquiry (GTE) shall be invited for tenders related to the procurement of Capital Goods for manufacturing iron & steel products (Appendix-B of the DMI&SP Policy) having estimated value up to Rs. 200 Crore except with the approval of competent authority as designated by Department of Expenditure. 5.8. The policy applies to the purchase of iron & steel products by private agencies for fulfilling an EPC contract and/or any other requirement of a Ministry or Department of Government or their PSUs. 6. Tender procedure for procurement 6.1. Procuring agencies shall follow standard procurement procedures, in accordance with instructions of the Ministry of Finance and CVC while adhering to DMI&SP policy. 6.2. The tender document, for procurement of both Goods as well as for EPC contracts, should explicitly outline the qualification criteria for adherence to the requirement as mentioned in Appendix A and Appendix B. 6.3. Domestic manufacturers of products under Appendix-A and Appendix-B shall self- certify the local content as per form-1 placed in the policy, at the time of bidding. 6.4. Bidders who are selling agents/authorized distributors/authorized dealers/authorized supply houses of the domestic manufacturers of iron & steel products, covered by Appendix-A, are eligible to bid with self- certification on behalf of the domestic manufacturers under the policy, subject to the bidder furnishing an authorisation certificate issued by the domestic manufacturer at the time of delivery. 6.5. For products covered under Appendix B of the DMI&SP policy, the bidder shall furnish certification issued by the statutory auditor or cost auditor of the company (in the case of companies) or from a practicing cost accountant or practicing chartered accountant (in respect of suppliers other than companies) declaring that the capital goods to be used in iron & steel industry are domestically manufactured in terms of the domestic value addition prescribed. 6.6. If Indian suppliers of an item are not allowed to participate and/or compete in procurement by any foreign government, due to restrictive tender conditions which have direct or indirect effect of barring Indian companies such as registration in the procuring country, execution of projects of specific value in the procuring country etc., it shall provide such details to the procuring entities for appropriate reciprocal action. 6.7. Entities of countries that have been identified by the Ministry of Steel as not allowing Indian companies to participate in their Government procurement for any item related to the Ministry of Steel shall not be allowed to participate in Government procurement in India for all items related to Ministry of Steel, except for the list of items published by Ministry of Steel permitting their participation. 6.8. The stipulation above shall be part of all tenders including those on GeM portal invited by the Central Government procuring entities. 6.9. In case restrictive or discriminatory conditions against domestic suppliers are included in bid documents, an inquiry shall be conducted by the Administrative Department undertaking the procurement (including procurement by any entity under its administrative control) to fix responsibility for the same. Thereafter, appropriate action, administrative or otherwise, shall be taken against erring officials of procurement entities under relevant provisions. Intimation on all such action shall be sent to the Standing Committee under the DMI&SP policy. 6.10. A supplier debarred by any procuring entity for violation of this Order shall not be eligible for preference under this Order for procurement by any other procuring entity for the duration of the debarment. The debarment for such other procuring entities shall take effect prospectively from the date on which it comes to the notice of other procurement entities. 6.11. In case, the matter is referred to the Ministry of Steel, the grievance redressal committee set up under the MoS shall dispose of the complaint within 4 weeks of its reference and receipt of all documents from the bidder after taking into consideration, the view of the Government Agency. The bidder shall be required to furnish the necessary documentation in support of domestic value addition claimed in iron & steel products to the grievance redressal committee under MoS within 2 weeks of the reference of the matter. 6.12. Procuring agency shall define the penalties, in case of a wrong declaration by the bidder of the prescribed domestic value addition, in the tender document. The penalties may include forfeiting of the EMD, other financial penalties, and blacklisting of such manufacturer/service provider etc., in terms of extant rules. 7. Implementation monitoring by the Ministry of Steel 7.1. The policy provisions shall be applicable for 5 years from the date of publication and may further be extended at the discretion of the Ministry of Steel. 7.2. MoS shall be the nodal ministry to monitor the implementation of the policy. 7.3. Agencies covered under DMI&SP policy shall send declaration on a quarterly basis indicating the extent of compliance to the policy and reasons for non-compliance thereof, during the preceding financial year. Appendix-A List of iron and steel products which can only be procured from domestic sources +-----+-----------------------------------------------------------------------------+----------+-------------+ | Sl. | Iron & Steel Products | HS code | Condition | | No. | | | | +=====+=============================================================================+==========+=============+ | 1 | Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or | 7208 | Melt & Pour | | | more, hot rolled, not clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 2 | Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or | 7209 | Melt & Pour | | | more, cold rolled (cold-reduced), not clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 3 | Flat-rolled products of iron or non-alloy steel, of a width of 600 mm or | 7210 | Melt & Pour | | | more, clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 4 | Flat-rolled products of iron or non-alloy steel, of a width of less than | 7211 | Melt & Pour | | | 600 mm, not clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 5 | Flat-rolled products of iron or non-alloy steel, of a width of less than | 7212 | Melt & Pour | | | 600 mm, clad, plated or coated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 6 | Bars and rods, hot-rolled, in irregularly wound coils, of iron or non- | 7213 | Melt & Pour | | | alloy steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 7 | Other bars and rods of iron or non-alloy steel, not further worked | 7214 | Melt & Pour | | | than forged, hot rolled, hot-drawn or hot-extruded, but including those | | | | | twisted after rolling | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 8 | Other bars and rods of iron or non-alloy steel | 7215 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 9 | Angles, shapes and sections of iron or non-alloy steel | 7216 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 10 | Wire of iron or non-alloy steel | 7217 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 11 | Flat-rolled products of stainless steel, of a width of 600 mm or more | 7219 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 12 | Flat-rolled products of stainless steel, of a width of less than 600 mm | 7220 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 13 | Other bars and rods of stainless steel; angles, shapes and sections of | 7222 | Melt & Pour | | | stainless steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 14 | Wire of other alloy steel | 7229 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 15 | Rails, railway or tramway track construction material of iron or steel | 7302 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 16 | Tubes, pipes and hollow profiles, of cast iron | 7303 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 17 | Tubes, pipes and hollow profiles, seamless, of iron (other than cast iron) | 7304 | Melt & Pour | | | or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 18 | Other tubes and pipes (for example, welded, riveted or similarly closed), | 7305 | Melt & Pour | | | having circular cross-sections, the external diameter of which exceeds | | | | | 406.4 mm, of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 19 | Other tubes, pipes and hollow profiles (for example, open seam or | 7306 | Melt & Pour | | | welded, riveted or similarly closed), of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 20 | Tube or pipe fittings (for example, connectors/couplings, elbow | 7307 | Melt & Pour | | | sleeves), of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 21 | Bars and rods, hot-rolled, in irregularly wound coils, of stainless steel | 7221 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 22 | Wire of stainless steel | 7223 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 23 | Flat-rolled products of other alloy steel, of a width of 600 mm or | 7225 | Melt & Pour | | | more, including electrical steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 24 | Flat-rolled products of other alloy steel, of a width of less than 600 | 7226 | Melt & Pour | | | mm, including electrical steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 25 | Bars and rods, hot-rolled, in irregularly wound coils, of other alloy | 7227 | Melt & Pour | | | steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 26 | Other bars and rods of other alloy steel; angles, shapes and sections, of | 7228 | Melt & Pour | | | other alloy steel; hollow drill bars and rods, of alloy or non alloy | | | | | steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 27 | Sheet piling of iron or steel, whether or not drilled, punched or made | 7301 | Melt & Pour | | | from assembled elements; welded angles, shapes and sections, of iron | | | | | or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 28 | Structures (excluding prefabricated buildings of heading 9406) and | 7308 | Melt & Pour | | | parts of structures | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 29 | Reservoirs, tanks, vats and similar containers for any material (other | 7309 | Melt & Pour | | | than compressed or liquefied gas), of iron or steel, of a capacity | | | | | exceeding 300 | | | | | whether or not lined or heat insulated, but not fitted with mechanical or | | | | | Thermal equipment | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 30 | Tanks, casks, drums, cans, boxes and similar containers, for any | 7310 | Melt & Pour | | | material(other than compressed or liquefied gas), of iron or steel, of | | | | | a capacity not exceeding 300L,whether or not lined or heat-insulated, but | | | | | not fitted with mechanical or thermal equipment | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 31 | Containers for compressed or liquefied gas, of iron or steel | 7311 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 32 | Stranded wire, ropes, cables, plaited bands, slings and the like, of | 7312 | Melt & Pour | | | iron or steel, not electrically insulated | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 33 | Barbed wire of iron or steel; twisted hoop or single flat wire, barbed or | 7313 | Melt & Pour | | | not, and loosely twisted double wire, of a kind used for fencing, of | | | | | iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 34 | Grill, netting and fencing, of iron or steel wire; expanded metal of | 7314 | Melt & Pour | | | iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 35 | Chain and parts thereof, of iron or steel | 7315 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 36 | Anchors, grapnels and parts thereof, of iron or steel | 7316 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 37 | Articles of iron and steel | 7317 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 38 | Articles of iron and steel | 7318 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 39 | Articles of iron and steel | 7319 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 40 | Springs and leaves for springs, of iron or steel | 7320 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 41 | Stoves,ranges,grates,cookers(includingthosewithsubsidiaryboilersforcent | 7321 | Melt & Pour | | | ral heating), barbecues, braziers, gas-rings, plate warmers and similar | | | | | non- electric domestic appliances, and parts thereof, of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 42 | Radiators for central heating, not electrically heated, and parts | 7322 | Melt & Pour | | | thereof, of iron or steel; air heaters and hot air distributors, not | | | | | electrically heated, incorporating a motor-driven fan or blower, and | | | | | parts thereof, of iron or steel | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 43 | Tables and similar house hold articles and parts thereof, of iron or steel | 7323 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 44 | Sanitary ware and parts thereof, of iron or steel | 7324 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 45 | Other cast articles of iron or steel | 7325 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 46 | Electrical steel and other articles of iron or steel | 7326 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 47 | Railway or tramway passenger coaches, not self-propelled | 8605 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 48 | Railway or tramway goods vans and wagons, not self-propelled | 8606 | Melt & Pour | +-----+-----------------------------------------------------------------------------+----------+-------------+ | 49 | Parts of railway or tramway locomotives or rolling-stock; such as | 8607 | Melt & Pour | | | bogies, bissel-bogies, axles and forged wheels, and parts thereof | | | +-----+-----------------------------------------------------------------------------+----------+-------------+ Appendix- В Indicative list of Capital Goods (non-exhaustive) which can be imported for Manufacturing Iron & Steel products, and minimum Domestic content applicable for the package 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the second and only highest good.