In A Move Effectively Targetting China, India Restricts Public Procurement From Neighbouring NationsThe flags of India and China.

Upping the ante against China, the government on Thursday (23 July) imposed restrictions on bidders from countries which share a land border with India on grounds of defence and national security.

The move comes amid tensions with China at the Line of Actual Control (LAC) in Ladakh.

As per the order, any bidder from such countries sharing a land border with India will be eligible to bid in any procurement whether of goods, services (including consultancy services and non-consultancy services) or works (including turnkey projects) only if the bidder is registered with the Competent Authority, the Ministry of Finance said in a statement.

The government has however exempted from the restrictions such countries to which India provides lines of credit or developmental assistance, thus effectively confining the restrictions to China and Pakistan.

While the private sector has been exempted from such restriction, the order takes into its ambit public sector banks and financial institutions, Autonomous Bodies, Central Public Sector Enterprises (CPSEs)and Public Private Partnership (PPP) projects receiving financial support from the government or its undertakings.

The competent authority for registration will be the registration committee constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).

Besides, political and security clearance from the Ministries of External and Home Affairs respectively will be mandatory.

Relaxation has been provided in certain limited cases, including for procurement of medical supplies for containment of COVID-19 global pandemic till 31 December 2020, the ministry said.

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