NEW DELHI: Amid the border row with China, the federal government on Thursday imposed restrictions on public procurement from China and different nations with frequent border.
The authorities of India amended the General Financial Rules 2017 to allow imposition of restrictions on bidders from nations which share a land border with India on grounds of defence of India, or issues straight or not directly associated thereto together with nationwide safety, an official assertion mentioned.
The division of expenditure has, below the mentioned Rules, issued an in depth order on public procurement to strengthen the defence of India and nationwide safety, it mentioned.
As per the order, it mentioned, any bidder from such nations sharing a land border with India will probably be eligible to bid in any procurement whether or not of products, providers (together with consultancy providers and non-consultancy providers) or works (together with turnkey initiatives) provided that the bidder is registered with the Competent Authority.
“The Competent Authority for registration will be the Registration Committee 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 be mandatory,” it mentioned.
The order takes into its ambit public sector banks and monetary establishments, autonomous our bodies, Central Public Sector Enterprises (CPSEs) and public personal partnership initiatives receiving monetary assist from the federal government or its undertakings, it added.
Observing that state governments additionally play a significant function in nationwide safety and defence of India, it mentioned, “the Government of India has written to the Chief Secretaries of the State Governments invoking the provisions of Article 257(1) of the Constitution of India for the implementation of this Order in procurement by State Governments and state undertakings etc.”
For state authorities procurement, it mentioned, the Competent Authority will probably be constituted by the states, however political and safety clearance will stay crucial.
Relaxation has been offered in sure restricted instances, together with for procurement of medical provides for containment of COVID-19 world pandemic until December 31, 2020.
By a separate order, nations to which the federal government of India extends traces of credit score or offers growth help have been exempted from the requirement of prior registration, it mentioned.
“The new provisions will apply to all new tenders. In respect of tenders already invited, if the first stage of evaluation of qualifications has not been completed, bidders who are not registered under the new Order will be treated as not qualified,” it mentioned.
If this stage has been crossed, ordinarily the tenders will probably be cancelled and the method began de novo, it mentioned, including that the order will even apply to different types of public procurement.
It doesn’t apply to procurement by the personal sector.