Quick Glance
Date 29 Apr 2025 · By MHI HEI Division · Goods 18 · Services 5 · Eligible Class-I local supplier
What is the PPP-MII Industrial Boilers Order
The Public Procurement (Preference to Make in India) Order, or PPP-MII Order, is the Government of India's flagship rule for giving domestic manufacturers a procurement edge in Central Government tenders. The umbrella PPP-MII Order was first notified by the Department for Promotion of Industry and Internal Trade (DPIIT) vide Order No. 45021/2/2017-PP(B.E.II) dated 15 June 2017, and has been amended on 28 May 2018, 29 May 2019, 4 June 2020, 16 September 2020 and 19 July 2024.
Under the framework, the Ministry of Heavy Industries periodically re-notifies the list of goods and services where India already has sufficient local capacity and competition. Once a category lands on that list, only Class-I local suppliers are allowed to bid — irrespective of the purchase value. The 29 April 2025 order is MHI's refreshed list for Industrial Boilers (Steam Generators), replacing the previous list issued on 29 September 2020.
Who Does This Order Apply To
The order applies to the procurement of any of the listed goods or services by:
All attached and subordinate offices of the Government of India.
All autonomous bodies under the Government of India.
All Government Companies as defined under the Companies Act.
States and Local Bodies, when they procure under any Central Scheme or Central Sector Scheme that is fully or partly funded by the Government of India.
In short, if a rupee of central funding is involved in the boiler procurement, this order governs who is allowed to bid.
Goods Covered Under the Order
The order lists 18 categories of goods used in Industrial Boilers / Steam Generators, each tagged with its HSN code. Class-I local supplier preference applies to every entry below:
S. No | Item / Goods | HSN Code |
|---|---|---|
1 | BQ Steel plates up to 100 mm (thickness) | 72085120 / 72085110 |
2 | Seamless Steel Pipes and tube up to 100 mm dia | 73043111 / 73043911 / 73045110 / 73045910 |
3a | Seamless Carbon steel pipes (OD < 368 mm, Wall Thickness < 36 mm) | 73043121 / 73043131 / 73043921 / 73043931 |
3b | Seamless Alloy steel pipes (P12 & P22) (OD < 273 mm, Wall Thickness < 36 mm) | 73045120 / 73045130 / 73045920 / 73045930 |
4 | ERW Steel Pipes | 73059021 |
5 | Forging (Nozzle, Flange, Elbow) | 73269099 |
6 | Structures made of I-beam, H-beam, Channels, Angles | 73089090 |
7 | FD Fan, ID Fan | 84145930 / 84041000 |
8 | Soot Blower | 84041000 |
9 | Safety Valve, Gate Valve, Blowdown Valve | 84818030 |
10a | Level Transmitter | 90262000 |
10b | Temperature Transmitter | 90258090 |
10c | Actuators (except High Accuracy Actuators) | 84123100 |
11 | Refractory | 69039010 / 69039020 / 69039030 / 69039090 |
12 | Insulation | 68061000 |
13 | Welding wire and Electrodes (except grade 91-92 nickel-based) | 83112000 |
14 | Fuel Feeders | 84029020 |
15 | Air Preheater (Rotary / Tubular) | 84041000 |
16 | Steam Coil Air Pre Heater (SCAPH) | 84195090 / 84041000 |
17 | Firing System | 84029010 / 84029020 / 84029090 |
18 | Damper & Expansion Joints | 84818010 / 83071000 / 84041000 |
Note the carve-outs: High Accuracy Actuators are not in the list, and welding wire / electrodes of grade 91-92 nickel-based are also excluded.
Services Covered Under the Order
Five service categories are similarly reserved for Class-I local suppliers in boiler-related procurement:
S. No | Service | HSN Code |
|---|---|---|
1 | Survey, Site Studies | 998333 |
2 | EPC Contracts | 995468 |
3 | Fabrication | 998873 |
4 | Civil Construction | 995426 |
5 | Other Services Contracts | 995468 |
Class-I Local Supplier Eligibility
A Class-I local supplier is the highest tier under the DPIIT PPP-MII framework — broadly, a supplier whose share of locally-added manufacturing value crosses the threshold defined for Class-I in the umbrella order. The applicable definition for this MHI notification is the one in Para 3(a) of DPIIT's PPP-MII Order No. 45021/2/2017-PP (BE-II)-Part(4) Vol.II dated 19 July 2024 — read that as the authoritative text, since this MHI order does not itself re-state the local-content threshold.
Class-II local suppliers and non-local suppliers are not eligible to bid for the listed goods and services under any procurement covered by this order, regardless of purchase value.
Grievance Mechanism
Complaints relating to the implementation of this order are decided by a Grievance Committee constituted by MHI:
Chairman — Joint Secretary, in-charge of Heavy Electrical Industries Division, MHI.
Member — Executive Director, Bharat Heavy Electricals Limited (BHEL).
Member — Director General, Indian Electrical and Electronics Manufacturers Association (IEEMA).
Member Secretary — Director / DS, in-charge of Heavy Electrical Industries (HEI) Division, MHI.
The Ministry of Heavy Industries is the nodal agency for monitoring implementation across all procuring entities in scope.
Common Mistakes Procuring Entities and Suppliers Make
Procurement teams reading the order for the first time tend to trip on the same handful of issues — keep these in front of you when you draft the tender:
Treating the order as advisory. It is mandatory for in-scope procurements; only Class-I local suppliers are eligible irrespective of purchase value, so a tender that admits Class-II or non-local bidders is non-compliant.
Missing the centrally-funded test for State / Local Body procurements. A State PSU's purely state-funded boiler tender is not covered, but the moment central scheme funding flows in — fully or partially — the order kicks in.
Ignoring the carve-outs in the goods list. High Accuracy Actuators and grade 91-92 nickel-based welding wire / electrodes are outside the list — bidders shouldn't claim Class-I preference for them, and procuring entities shouldn't restrict bidding for them under this order.
Reading the 2025 list as additional to the 2020 list. This order supersedes the earlier 29 September 2020 order — use only the new list for any tender floated after the issue date.
Skipping the umbrella DPIIT order. Definitions of Class-I, Class-II, local content, and verification are all in the DPIIT PPP-MII Order (15 June 2017 with amendments up to 19 July 2024), not in this MHI re-notification — read both, not just this one.
Routing complaints to DPIIT instead of MHI. Grievances relating to this order are resolved by MHI's Grievance Committee, not DPIIT — the first stop is the Joint Secretary, HEI Division, MHI.
Frequently Asked Questions
Does this order apply to a State PSU buying boilers from its own funds?
Only when central funding is involved. The order applies to State and Local Body procurements only when the purchase is made under a Central Scheme or Central Sector Scheme that is fully or partially funded by the Government of India. Pure intra-State or self-funded purchases sit outside this order.
Are Class-II local suppliers allowed to bid for the listed goods?
No. For the 18 goods and 5 services in this list, only Class-I local suppliers can bid, irrespective of the purchase value, as per Para 3(a) of the DPIIT PPP-MII Order dated 19 July 2024 referenced in this notification.
What if my product matches a listed item but has different specifications — say, a higher-accuracy actuator?
The order's text carves out specific exclusions — High Accuracy Actuators and grade 91-92 nickel-based welding wire / electrodes are explicitly not in the list. For any other item, match the HSN code given in the table; if it matches, the Class-I preference applies.
Where is the local-content threshold for a Class-I supplier defined?
Not in this MHI order. The threshold and verification procedure are in the umbrella DPIIT PPP-MII Order No. 45021/2/2017-PP (BE-II) dated 15 June 2017 and its amendments, most recently dated 19 July 2024. Suppliers should read that document for the operative numerical threshold.
Who decides if my boiler-procurement complaint is valid under this order?
The MHI Grievance Committee, chaired by the Joint Secretary in-charge of the Heavy Electrical Industries Division, with members from BHEL and IEEMA and a Member Secretary from the HEI Division. They are the first port of call for any implementation-level complaint about this order.
Source
Source: Ministry of Heavy Industries (HEI Division) Order F. No. 16(4)/2018-HEI-(Part-1) (E-15608) dated 29 April 2025.
Final Words
The 29 April 2025 PPP-MII Industrial Boilers Order tightens India's Make-in-India procurement preference for steam-generator equipment and services, making Class-I local supplier status the only ticket to bid for 18 goods categories and 5 service categories. For procuring entities, the order is mandatory once central funding is in scope; for suppliers, the practical step is verifying Class-I eligibility under the umbrella DPIIT order before bidding. For the latest updates, keep visiting SarkariWorld.org.
