New Delhi: The government today said it will not issue any notification under the Preferential Market Access (PMA) policy with regard to procurement in private sector until the review of the policy is complete.
"... it has been decided that no notification under the policy with regard to procurement in private sector, of products having security implications be issued till such a review is completed," Minister of State for Communications and IT Milind Deora said in a written reply to Rajya Sabha.
The government has already issued notification under PMA policy for government procurement.
"The government has thus so far issued detailed notifications for 23 telecom products and six electronics/IT related products for which preference to domestic manufacturers is to be provided in government procurement," Deora said.
With regard to procurement in private sector, Deora said several representations were received by the government, both in favour of and against the policy, especially in relation to its applicability to electronic products having security implications.
"After considering the pros and cons of alternative approaches to handling security related products, the government has decided to review the policy," he added.
In government procurement, the policy will be applicable to all ministries and departments (except defence) and their agencies for electronic products purchased for government purposes.
"The extent of government procurement from domestic manufacturers shall not be less than 30 per cent of the total procurement value of notified electronic products," Deora said.
He said both Indian and foreign companies manufacturing electronic products in India are entitled to the preference to domestic manufacturers under the policy.