India has put restrictions on traders from nations sharing border on grounds of defence and national security. The move is expected to affect Chinese firms and is in line with the economic retaliation following the June 15 clash with Chinese troops in Ladakh that ended in fatalities. There have been reports that the Chinese troops are yet to move out of some parts in Ladakh despite an agreement that both sides would go to their permanent locations to defuse tension in the area.
A statement from the government said bidders from a nation sharing land border with India will be eligible to bid in any procurement “only if they are 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,” the statement read.
The order will apply to any procurement — goods or services (including consultancy services and non-consultancy services) or works (including turnkey projects), the government said.
Exceptions have made in limited cases — including procurement of medical supplies for containment of COVID-19 global pandemic till December 31.
“By a separate Order, countries to which Government of India extends lines of credit or provides…