NEW DELHI: Buy Indian and Make in India – the government will bring out a full-fledged ‘price preference’ policy favouring Indian-owned companies. The policy, likely to be finalised by end of May, is being driven by the PMO and is aimed at boosting Indian enterprises across sectors.Preferential pricing is expected to allow additional time to Indian-owned bidding companies so that they can match the lowest bid in case the latter was made by an entity that’s partly Indian-owned or mostly foreign-owned.Top government officials, who spoke off record, told ET that the new price preference policy will help Indian enterprises that apply for any government purchase/tender.The other major policy change in the works will involve compulsory ‘value addition’ — mandating and incentivising use of local components in every industry and every procurement area.Both proposals — ‘price preference’ and ‘value addition’ — are part of the larger plan of the Modi government to boost production in India by Indian companies, officials told ET.These policy decisions are being taken to further accelerate the prime minister’s flagship ‘Make in India’ mission and to complement it, officials said.A series of moves have already been made over the last 2-3 months preparing the ground for bringing in an ‘India First’ or ‘Buy Indian’ regime similar to the Buy American Act, 1933 of the United States.On March 7, the finance ministry had released the new General Financial Rules which brought in a new element by way of Rule 153, a rule that now allows any government department to give first preference to “locally manufactured goods or locally produced services”. ET reported this on Friday.In April, the union cabinet gave its approval for a policy to provide purchase preference for local companies in case of procurement by all PSUs under the oil ministry.This month, the Cabinet approved a policy for providing preference to domestically manufactured iron and steel products in government procurement.The policy is now applicable for all government tenders where price bids are yet to be opened.In May again, the ministry of electronics and information technology notified the Phased Manufacturing Programme (PMP) for promoting locally manufactured mobile handsets in the country though financial incentives to manufacturers of phones and phone sub-assemblies.