Government e-Marketplace (GeM) par public procurement me domestic manufacturing ko badhava dene ke liye Public Procurement (Preference to Make in India) Order (PPP-MII Order 2017) ko strictly implement kiya jata hai. Sarkari tenders me Class-1 Local Suppliers ko 20% tak price purchase preference milti hai, jisse wo non-local ya foreign competitors ko aasani se beat kar dete hain.
Is guide me hum seekhenge ki Local Content percentage kaise calculate karein, Class-1 vs Class-2 me kya antar hai aur valid MII Certificate Format kaise prepare karein.
Important Compliance Disclaimer
Before proceeding, please note that Tender Sahayak AI is an independent, private technology platform. We are not affiliated with, authorized, or officially connected with the Government e-Marketplace (GeM Portal) or the Government of India. The official portal is hosted at https://gem.gov.in. Use this manual for educational guidance.
Supplier Classification Under Make in India Order
DPIIT guidelines ke mutabik bidders ko local value addition ke adhar par 3 categories me divide kiya gaya hai:
| Category |
Local Content Percentage |
Tender Eligibility |
Purchase Preference (L1 Match) |
| Class-I Local Supplier |
Minimum 50% or more |
Eligible for all reserved & general tenders |
✅ Gets top preference to match L1 within 20% margin |
| Class-II Local Supplier |
Between 20% and 50% |
Eligible for general open tenders |
❌ No purchase preference over Class-I |
| Non-Local Supplier |
Less than 20% |
Barred from most domestic tenders |
❌ Disqualified if tender is reserved for MII |
Local Content Calculation Formula
Government guidelines ke anusar local content calculation manufacturing cost par based hoti hai, na ki sirf retail markup par:
$$\text{Local Content (%)} = \left( \frac{\text{Total Landed Cost} - \text{Imported Material Cost (including customs duty)}}{\text{Total Landed Cost}} \right) \times 100$$
Kya Local Content me Count Hota Hai?
- Bharat me khareeda gaya raw material aur fabrication cost.
- Direct Indian labour, factory overheads aur assembly cost.
- Domestic packaging material aur Indian freight charges.
Kya Local Content me Count NAHI Hota?
- Imported sub-assemblies, imported chips, imported sensors (chahe custom duty pay ki gayi ho).
- Marketing expenses, sales commissions, aur pure trader markup.
MII Certificate Format (Sample Text on Letterhead)
TO WHOMSOEVER IT MAY CONCERN
LOCAL CONTENT DECLARATION CERTIFICATE (MII ORDER 2017)
Tender / Bid Number: GEM/2026/B/XXXXXXXX
Item Name: [Item Description]
We, [Company / Firm Name], hereby certify that the goods/services offered by us against the above-mentioned GeM Bid satisfy the Local Content requirement as defined under DPIIT Order No. P-45021/2/2017-PP (BE-II).
1. Local Content Percentage: [E.g., 68.5%]
2. Supplier Classification: Class-I Local Supplier
3. Location(s) at which local value addition is made:
Plot No. XX, Industrial Area, [City], [State] - [Pincode]
We understand that any false declaration will be a breach of the Code of Integrity under Rule 175(1)(i)(h) of the GFR 2017 and may attract debarment from GeM portal for up to two years.
Authorized Signatory Name:
Designation & Seal:
Date & Place:
UDIN (if issued by CA):
Purchase Preference Mechanism (L1 Matching Rule)
Agar financial opening me koi non-local ya Class-2 supplier L1 ban jata hai, aur koi Class-1 supplier L1 price ke L1 + 20% margin ke andar quote karta hai:
- Class-1 supplier ko invite kiya jata hai ki wo apna price reduce karke L1 price match kare.
- Agar Class-1 supplier agree karta hai, toh contract use award ho jata hai.
- Is preference ke chalte Indian manufacturers ko foreign imported products par heavy advantage milta hai.
📌 Smart GeM Bidding Resources
SahayakAI Mission
SahayakAI ka mission hai Bharat ke businesses ko Government procurement ko aasaan tareeke se samajhne aur confidently participate karne me madad karna. Hum AI-powered productivity tools, practical guidance aur compliance-first approach ke through sellers ko empower karte hain, taaki woh Government e-Marketplace (GeM) Portal aur anya public procurement platforms par behtar tareeke se kaam kar sakein.
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