India restricts Chinese companies from participating in public procurement bids

New Delhi: India upped the ante against China by restricting bidders from countries with which it shares land border from participating in tenders for government procurement without approval from competent authorities on the ground of defence and national security.

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

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

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

According to 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 a registration committee to be constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).

Political and security clearance from the Ministries of External and Home Affairs respectively will also be mandatory. Asianet Online