No preference for ‘Make in India’ in World Bank project

  • The $1 billion World Bank loan to prevent, detect and respond to the threat of coronavirus and strengthen national health systems for preparedness
    • As India combats the ongoing pandemic comes with a condition of “universal eligibility” in procurements.
  • This would mean that all preferential market access policies, including
    • Public Procurement (Preference to Make in India) Order,
    • Micro Small & Medium Enterprises (MSME) Policy,
    • certain benefits to start-ups,
    • Shall not be applicable on purchases made while implementing the national project.
  • Confirming this, the Ministry of Railways, in a note to all Zonal Railways, production units and other major establishments, said
    • the tender documents should be amended to remove such references and ensure that contractors explicitly agreed
    • To comply with the relevant provisions of the World Bank’s anti-corruption guidelines and prohibited policies of the Asian Infrastructure Investment Bank (AIIB).
  • Besides paving the way for universal eligibility in the supply system, the World Bank would have the right to review the procurement documents, inspect/audit all accounts, records and other files relating to the project.
  • Compliance to these conditions has been made mandatory for the funding.
  • The Railways will spend ₹399 crore across its network to strengthen health infrastructure in the combat against COVID-19 in this financial year.
  • The focus will be on creating more isolation facilities with medical equipment such as ventilators, oxygen cylinders etc.
  • This is part of the “India COVID-19 Emergency Response and Health System Strengthening Project,”
    • A joint initiative of the Government of India and the World Bank that has $1 billion loan disbursed by the International Bank for Reconstruction and Development (IBRD).
  • The Railway Ministry is one of the implementing agencies of the project.
  • These funds would be utilised for establishing isolation wards by purchasing ventilators, oxygen cylinders, laboratory machines, Personal Protection Equipment (PPE) kits, face shields, hospital furniture, medical equipment, gloves, goggles and other consumables.
  • The first component of the project deals with emergency response to the pandemic and would be implemented till April 2022.