New Delhi | Jagran News Desk: Amid escalating tensions with China across the Line of Actual Control (LAC), India on Friday announced that it has decided to put restrictions on traders from nations sharing border “on grounds of defence and national security”.

The government, however, said that countries which provide India lines of credit or developmental assistance are exempted. It noted that the Department of Expenditure has also issued a detailed order on public procurement to strengthen the defence of India and national security.

"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," the government said in its order.

As per the Centre, any bidder from a country which shares a 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 the Competent Authority”.

The Centre further noted that the order takes into its ambit 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.

"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," the government said.

Though the government did not name a country, the order is aimed at inspecting and imposing curbs on Chinese investments in India. Earlier this year in April, the Centre had blocked FDI through the automatic route from countries which share land borders with India.   

Tensions between India and China had escalated over the last few months, especially after the violent clash at the Galwan Valley that claimed the lives of 20 Indian soldiers. Since then, India has cancelled railway and road tenders held by Chinese companies. The government recently also banned 59 Chinese, including TikTok, on grounds of national security. 

(With PTI inputs)

Posted By: Aalok Sensharma