After FDI, Chinese companies now face curbs in getting govt contracts | India News

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NEW DELHI: In a major escalation of pressure with China, the federal government late Friday modified guidelines to allow curbs on bidders from international locations that share a land border with India “on the grounds of defence and national security”.
Though the order doesn’t identify any nation — as in the case of the April 17 order that blocked FDI by way of the automated route from the identical set of neighbours — it’s clearly geared toward scrutinising and imposing curbs on Chinese investments and partnerships in Indian initiatives.
The new guidelines search to dam provide of stationery, generators and telecom tools in addition to award of highway and energy contracts to companies which have a hyperlink with China. The transfer follows a latest ban on 59 Chinese apps and comes in the backdrop of the continued navy stand-off in Ladakh the place Chinese forces are dragging their toes over pulling again after partly complying with mutual agreements to disengage. Indian navy commanders and prime diplomats have unambiguously conveyed to China that established order have to be restored and India will do all it could possibly to safeguard its sovereignty.
The motion introduced late Friday night alerts rising impatience with China over its failure to completely implement the “consensus” to disengage and de-escalate. The order, which doesn’t apply to non-public sector procurement, mentioned, “The new provisions will apply to all new tenders.
In respect of tenders already invited, if the first stage of evaluation of qualifications has not been completed, bidders who are not registered under the new order will be treated as not qualified.”
If the primary stage has been crossed, ordinarily the tenders might be cancelled and the method began de novo. The authorities order amended the “General Fi nancial Rules 2017” to permit the Centre to intervene in issues that instantly or not directly relate to defence and nationwide safety.
As per the order any bidder from such international locations sharing a land border with India might be eligible to bid provided that registered with an authority to be arrange by the division of promotion of trade and inner commerce. Procurement will embody items, companies (together with consultancy companies and non-consultancy companies) or works (together with turnkey initiatives) provided that the bidder is registered with the “competent authority”.
Relaxation has been offered in sure restricted instances, together with for procurement of medical provides for Covid-19 until December 31, 2020.

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