Modi government takes big step : Ban on government procurement from China and other neighboring countries

In a separate order, the government has exempted those countries from pre-registration, which have been provided with credit facilities or development assistance from the Government of India.

New Delhi : This step has been taken keeping in view the matters related to defense and security of the country. The Department of Expenditure issued a detailed order on public procurement under the rule intended to strengthen the country's defense and national security. Under the order, any supplier of countries bordering India can bid for the supply of goods, services (including consultancy and non-consultancy) or project works (including turn-key projects) for public projects in India. , When it is registered with the appropriate authority.

The government has imposed controls on public procurement from countries including China, which have borders with India. Companies from these countries can fill the tender only after security clearance and registration with a special committee. The move comes amidst a border dispute with China. An official statement on Thursday said that the Government of India has amended the General Financial Rules, 2017 to control the bidding of countries that are bordered by India.

 

It states that the appropriate authority for registration would be the Registration Committee constituted by the Department of Industry Promotion and Internal Trade (DPIIT). For this, political and security clearance from the Ministry of External Affairs and Home Affairs will be mandatory. The scope of the order also includes public sector banks and financial institutions, autonomous bodies, central public sector undertakings, public-private partnership projects, which seek financial support from the government or the entities under it.

It states that state governments have an important role in protecting and protecting the country. In view of this, the Government of India has written a letter to the Chief Secretaries of the State Governments using Article 257 (1) of the Constitution regarding the implementation of this order in the matter of procurement by the State Governments and State Undertakings etc. States will constitute appropriate authorities in case of procurement of state governments but political and security clearance will remain mandatory. Exemptions have been granted in some cases.