Industry Welcomes Govt’s Move on Bidding Regulations for Neighbouring Countries

The Government of India (GoI) has amended the General Financial Rules 2017 to impose restrictions on bidders from countries sharing a land border with India.

July 24, 2020. By Manu Tayal

The Government of India (GoI) has amended the General Financial Rules 2017 to impose restrictions on bidders from countries sharing a land border with India.

Despite India’s dependence on imports from China, Indian government is cutting dependence on China to encourage manufacturing in the country after PM Modi’s ‘Aatma Nirbhar Bharat’ call.

Further, the curbs have been imposed on procurement of public projects on the grounds of matters directly or indirectly related to ‘national security’.

Industry body Indian Electrical & Electronics Manufacturers’ Association (IEEMA) welcomes the government’s move and assured full support on behalf of its members to meet the requirements of the country.

India shares a land border with 7 countries, including China, Pakistan, Bhutan, Nepal, Myanmar, Afghanistan and Bangladesh.

As per the order, issued by the Department of Expenditure, 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 they are registered with the Competent Authority, which will be the Registration Committee constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).

Also, political and security clearance from the Ministries of External and Home Affairs respectively will be mandatory.

RK Chugh, President, IEEMA, has welcomed the move and said that, “Indian electrical equipment industry has the capacity, ability and cost competitiveness to effectively service and meet the need of not only Indian industry but also enhance its exports. And if we as a nation are to be serious about taking on China in our own home market, then all of us - manufacturers, importers, retailers, consumers and the government — need to commit to this. And more importantly, be prepared for both the consequences and costs of such a move at least in short run. From medium term onwards, we will start seeing enormous benefits out of full Make in India efforts.”

“National security is of paramount importance and in today’s connected world we as a nation have to be very vigilant and careful in what in install into our systems. Electrical industry is even more vulnerable considering the nature of the technology and the wide spread ramifications that it can have if something goes wrong as it has the potential to disrupt every aspect of life whether it be hospitals, telecommunications or industrial production. We wholeheartedly support and stand by the nation and the government in the interest of National Security. Indian industry is capable to deploy its own solutions and will surely rise up to the occasion and delivery when it matters the most,” said Vipul Ray, Senior Vice President, IEEMA articulates. 

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