Government to review policy on preference to domestic electronic products

The government is reviewing the entire policy on providing preference to domestically manufactured electronic goods (PMA Policy) in both government and private procurements.

The decision was taken at a meeting held in the prime minister's office (PMO) attended by the national security adviser, the cabinet secretary and the principal secretary to the PM and officials of all concerned ministries.

Accordingly, the policy for providing preference to domestically manufactured electronic goods, particularly PMA in the private sector, will be recalibrated and submitted to the cabinet.

No notifications on PMA in the private sector on security related products will be issued till the PMA policy is reviewed and any notifications in the draft stage will be withheld, an official release said today.

The revised proposals will incorporate a detailed provision for project / product / sector specific security standards, alternative modes of security certification, and a roadmap for buildup of domestic testing capacity, the release said.

''The revised proposal on PMA in the private sector for security related products will not have domestic manufacturing requirements, percentage based or otherwise, but will incorporate a mechanism for a centralised clearing house mechanism for all notifications under the PMA policy,'' the release noted.

The National Security Council Secretariat will provide a definition of "security" for usage in the context of security related issues concerning products, projects or sectors.

The department of information technology (DeiTY) will bring a final note to the cabinet on the revised policy within 4 weeks.

 The current PMA policy in private sector will be reviewed and all notifications in this regard will be kept in abeyance.

While there are no international commitments affecting government procurement, private sector procurement policies are covered by India's obligations in the WTO. However, restrictions are permissible even in the private sector in essential security interests.

The government decision follows concerns raised in many quarters on different aspects of the PMA policy, particularly the policy relating to procurement by the private sector for electronic products with security implications.

The department of information technology (DeitY) and the telecom department (DoT) have notified 6 and 23 products, respectively, although their implementation is yet to commence. (Click here for list of 14 products)