The Hindu Business Line : CII unhappy with extension of preference to PSUs

THE President of the Confederation of Indian Industry (CII), Mr Sanjiv Goenka, has described as unfortunate the two-year extension of the Purchase Preference Scheme for public sector enterprises.

"The extension of the scheme went against the principle of free, open and fair competition and the promotion of efficiency and maximisation of domestic value-addition in the industrial sector," Mr Goenka said.

In a statement, CII aid that if the scheme were to be scrapped in a phased manner, certain safeguards, including a minimum value-addition criterion wherein the PSUs' indigenous value-addition to project must be 30 per cent in terms of project value in its core activities, were required.

Besides, the chamber said that the scheme should be applicable only to indigenous value addition (rupee content) done by the PSUs and not on the entire project value (which would include foreign bid value).

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