The Union Cabinet
chaired by the Prime Minister Shri Narendra Modi has given its approval
for Policy to provide Purchase Preference (linked with Local Content
(PP-LC) in all Public Sector Undertakings under Ministry of Petroleum &
The Policy will be applicable for five years. A steering committee will
be constituted to oversee implementation of the Policy and carry out
annual review and recommend continuation of the policy from year to year
Under the Policy, the targets of Local Content (LC) will be stipulated
for certain oil and gas business activities. The manufacturers/ service
providers who meet the local content targets and whose quoted price is
within 10% of the lowest valid price bid would be eligible for purchase
preference for a stipulated portion of the purchase order on matching
The Policy is expected to encourage suppliers and service providers to
progressively adopt 'Make in India' practices and add value to their
goods and services within the country.
The Policy will apply to all the Public Sector Enterprises and their
wholly owned subsidiaries, Joint Ventures that have 51% or more equity
by one or more Public Sector Enterprises, attached and subordinate
offices of Ministry of Petroleum and Natural Gas.
The ‘Make in India’ initiative was launched by Prime Minister in
September, 2014 as part of a wider set of nation-building initiatives
devised to transform India into a global design and manufacturing hub.
In tune with this campaign, the Government has decided to incentivize
the growth in local content in goods and services while implementing oil
and gas projects in India through a policy for providing Purchase
Preference to the manufacturers/ service providers who meet the local
content targets in oil and gas business activities.