The Government of India has been making tough decisions against China since the cowardly movement of Chinese troops in the Galwan Valley. The Government of India has now amended the general financial rules 2017, keeping in view the country's security. Through this amendment, the government has banned the entry of Chinese companies in government bid. Now, Chinese companies would not be able to bid in any government bid of the central and state governments.
The amendment to the general financial rules 2017 will affect countries bordering India-China, Nepal, Bhutan, Bangladesh, and Pakistan. Bidders of these countries will not be able to bid for the purchase of the central and state government of India. A particular order has been issued by the Government in the context of public procurement, keeping in view the country's security.
The rule of not bidding in government procurement on countries bordering India will be applicable to public sector banks and financial institutions, central public sector enterprises, autonomous bodies, and public-private partnership projects which receive financial assistance from the Government or its undertakings. However, this rule exempts countries that India provides assistance for development. Thus, this rule effectively applies to China and Pakistan. The government has also exempted the ban in many cases. One of them is also the purchase of medical supplies. The ban has been exempted from this ban in some limited cases, including the purchase of medical supplies for the prevention of the Covid-19 global pandemic till 31st December 2020.
The Government has written to the Chief Secretaries of the States in this regard to implement the provisions of Article 257 (1) of the Constitution of India for implementation of this order in government procurement on behalf of state governments and state undertakings etc.
Image credit: cfo.economictimes.indiatimes