Indian government to incentivize growth in local goods

The Union Cabinet chaired by the Prime Minister Mr. Narendra Modi has recently approved signing of Framework of Understanding (FoU) on Cooperation in the Hydrocarbon Sector with Bangladesh, setting up of Indian Institute of Petroleum and Energy (IIPE) at Visakhapatnam in Andhra Pradesh as "an Institute of National Importance" through an Act of Parliament and also approved the Policy to provide Purchase Preference (linked with Local Content PP-LC) in all Public Sector Undertakings under Ministry of Petroleum & Natural Gas.
The Secretary for Petroleum and Natural Gas, Mr. K D Tripathi held a press conference and briefed the media on the various cabinet decisions taken for the ministry. Under the policy, progressively increasing targets of local content are being stipulated for procurement of goods, services and EPC contracts for oil and gas business activities. The manufacturers or service providers who meet the local content targets and whose quoted price is within 10% of lowest valid price bid, would be eligible for 10% purchase preference for a stipulated portion of the purchase order, on matching such price. 
He added that 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 Cabinet had approved a Framework of Understanding on Cooperation in the Field of Hydrocarbons. The visit of PM Sheikh Hasina, which took place between April 8-10 has given a further impetus to the Indo Bangladesh relations, as 22 documents were signed, including many in the field of oil and gas.
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