India has upped the ante against China by restricting companies from countries with a shared border from participating in bids for government procurement without approval from competent authorities. The government, however, exempted countries receiving lines of credit or developmental assistance from India, effectively blocking China and Pakistan.
“The government of India today amended the General Financial Rules 2017 to enable imposition of restrictions on bidders from countries that share a land border with India on grounds of defence of India, or matters directly or indirectly related to that, including national security,” the finance ministry said late on Thursday.
Relaxations were provided in limited cases, including for procurement of medical supplies to contain covid-19 till 31 December. The private sector, however, was exempted from any such restriction.
The change in rules will be applicable to all public sector banks and financial institutions, autonomous bodies, central public sector enterprises, public-private partnership projects receiving state funding, or government undertakings.
Any entity from countries sharing a land border with India will be eligible to bid for any procurement of goods, services consultancy and non-consultancy, or works, including turnkey projects, only if it is registered with a registration committee to be constituted by the department for promotion of industry and internal trade. Political and security clearances from ministries of external affairs and home affairs, respectively, will be mandatory.
