The Centre has amended the General Financial Rules 2017 to be able to impose restrictions on bidders from countries which share border with India on grounds of defence and national security.
The decision which is being speculated as a move directed at Chinese firms comes amid reports that Chinese troops are yet to disengage from certain areas in eastern Ladakh.
A statement by the finance ministry issued on Thursday (July 23) said bidders from countries which share a land border with India will be eligible to bid any procurement if they are registered with the “Competent Authority.”
The competent authority here will be the registration committee formed by the Department for Promotion of Industry and Internal Trade (DPIIT).
It will also be compulsory for the traders to get political and security clearance from the ministries of external and home affairs.
“The Government of India today amended the General Financial Rules (GFR) 2017 to enable imposition of restrictions on bidders from countries which share a land border with India on grounds of defence of India, or matters directly or indirectly related thereto including national security,” read a finance ministry statement
The orders will include procurements of goods or services or works.
The government, however, has exempted countries to which India extends lines of credit or provides development assistance, from the prior registration requirement.
India recently made the ‘country of origin’ mandatory for sellers listing their products on e-Marketplace and banned 29 apps with Chinese links including TikTok, after the country lost 20 soldiers in a skirmish with Chinese Troops in Galwan Valley on June 15.
Diplomats from both sides on Friday are slated to discuss the disengagement process, which has not materialised as planned earlier.