The Union finance ministry has made an important amendment in its public finance rule. On Thursday (July 23), the government took this important decision to bar all government agencies from procuring goods and services from bordering China and Pakistan on the basis of national security, the Hindustan Times reported.
This decision by the Modi government comes at a time when China has still not kept its promise of de-escalation at the Line of Actual Control (LAC) in Ladakh.
The statement issued by the Ministry of Finance said “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 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”
The private sector has no such restriction on how to conduct business. However, 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 Competent Authority for registration will be the Registration Committee constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).
All political and security clearance will only be given from the Ministries of External Affairs and Ministry of Home Affairs respectively.
Relaxation has been provided in certain limited cases, including for the procurement of medical supplies for containment of COVID-19 global pandemic till 31 December 2020.
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.