“Indirect Tax I Indirect Tax Litigation I Customs & FTP I Central Licensing I Arbitration I Advisory”
Dated: 15.06.2025
MHI Enforces Local Content Mandate for Industrial Boilers
In a significant policy move aimed at deepening India’s self-reliance in heavy engineering and boiler manufacturing, the Ministry of Heavy Industries (MHI) has issued a revised notification dated 29 April 2025 under the Public Procurement (Preference to Make in India) Order, 2017. The order outlines a comprehensive list of goods and services related to Industrial Boilers (Steam Generators) for which only Class-I local suppliers will be eligible to participate in public procurement tenders.
Policy Background
The notification is issued pursuant to:
- DPIIT’s original PPP-MII Order No. 45021/2/2017-PP(B.E.II) dated 15.06.2017, and
- Subsequent amendments up to 19.07.2024
This move aligns with the government’s objective of enhancing local production capacity, generating employment, and reducing dependency on imports in key industrial sectors.
Key Highlights of the MHI Order (29.04.2025)
Goods with Mandatory Local Sourcing
The following components, assemblies, and materials used in Industrial Boilers/Steam Generators are covered under this directive:
| Item Description | HSN Codes |
| BQ Steel Plates (up to 100mm) | 72085110, 72085120 |
| Seamless Pipes (up to and above 100mm) | 730431xx, 730439xx, etc. |
| ERW Steel Pipes | 73059021 |
| Forgings (Nozzle, Flange, Elbow) | 73269099 |
| Structural Steel (I-beam, H-beam, Channels) | 73089090 |
| Boiler Accessories (FD Fan, ID Fan, Valves) | 84041000, 84818030, etc. |
| Instrumentation (Transmitters, Actuators) | 90262000, 84123100 |
| Refractory, Insulation, Electrodes | 6903xxxx, 68061000, 83112000 |
| Air Preheaters, Fuel Feeders, Dampers | 84041000, 840290xx, 84818010 |
Services with Sufficient Local Capacity
The following services are also reserved exclusively for Class-I local suppliers:
| Service Description | HSN Code |
| Site Survey & Studies | 998333 |
| EPC Contracts | 995468 |
| Fabrication Services | 998873 |
| Civil Construction | 995426 |
| Turnkey/General Services | 995468 |
Procurement Restriction
As per Para 3(a) of the PPP-MII Order (as amended on 19.07.2024), only Class-I local suppliers are eligible to bid, regardless of the purchase value, for all goods and services listed in this notification.
This is applicable to:
- All central ministries, PSUs, and autonomous bodies
- State governments and local authorities undertaking procurement under centrally-funded schemes
Governance & Grievance Redressal
A Grievance Committee has been constituted by MHI to address complaints related to the implementation of this order:
- Chairman: Joint Secretary, Heavy Electrical Industries Division, MHI
- Members:
- Executive Director, BHEL
- Director General, IEEMA
- Director/DS, HEI Division (Member Secretary)
All terms, conditions, and definitions follow those laid out in the DPIIT PPP-MII Order 2017 and subsequent amendments.
Implications for Industry
Boost to Domestic Manufacturing: Encourages capacity expansion and localization of key boiler components.
Exclusion of Imports: Restricts participation of foreign bidders or importers unless classified as Class-I local suppliers.
Standardization in Government Tenders: Establishes a uniform list for procurement and eliminates interpretation-related disputes.
Conclusion
The updated PPP-MII mandate for Industrial Boilers and related services is a critical push towards self-reliant industrial infrastructure. This structured approach not only ensures quality and consistency in government procurement but also nurtures a vibrant domestic supply chain.
Listen to this on our #YouTube Channel
In case you face any issues related to Indirect Tax-Customs, GST, Foreign Trade Policy (FTP), Arbitration matters and Central Licensing and related advisory matters in India then please feel free to get in touch with SJ EXIM Services.
We offer Legal advice and litigation support in matters related to Indirect Tax-Customs, FTP, other Indirect Tax matters & Arbitration law, all sorts of Central licensing and related matters. Come and explore the new way of doing business with us!
Source: MHI
Handy Download:
Connect with us for more-
@ Team S J EXIM SERVICES, New Delhi, IN
CP: Ms. Shubhra Jha, Founder
Tel: +91-11-4999 2707 I +91-9999005693
Web: www.sjexim.services
EMAIL: operations@sjexim.services I shubhra@sjexim.services
Facebook: www.facebook.com/sjeximservices
LinkedIn: https://www.linkedin.com/company/90794255/admin/feed/posts/
YouTube: https://www.youtube.com/@sjeximIndia
Subscribe our WhatsApp Channel: https://whatsapp.com/channel/0029VaTxDT8JZg4CHEOSoK47
Subscribe our Telegram Channel: https://t.me/sjeximindia
Leave a ReplyCancel reply