India Toughens Public Procurement Rules For Neighboring Countries - Finance Ministry

NEW DELHI (UrduPoint News / Sputnik - 24th July, 2020) The Indian government amended its financial policy and restricted participation in public procurement for bidders from countries that share a land border with India amid ongoing New Delhi-Beijing tensions, the Finance Ministry said.

"The Government of India today amended the General Financial Rules 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 there to including national security. The Department of Expenditure has, under the said Rules, issued a detailed Order on public procurement to strengthen the defence of India and national security," the finance ministry said in a press release.

The amended policy obliges bidders from neighboring countries to register with the Registration Committee "constituted by the Department for Promotion of Industry and Internal Trade.

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The rule would be relaxed in certain cases, including for the procurement of medical supplies until the end of the year amid the ongoing COVID-19 pandemic.

The new order did not mention China, but the move is seen as targeted against Beijing as Chinese businesses have major interests in India. New Delhi-Beijing relations have been deteriorating recently, especially after the fatal border skirmish in mid-June which killed 20 Indian servicemen and an unknown number of Chinese troops.

Other countries that share borders with India and could be affected by the toughened policy include Pakistan, Nepal, Bangladesh, Myanmar and Bhutan.