All tenders with China firms’ participation will not be hit

NEW DELHI: A bidding process already underway for an Indian government contract will not be scrapped merely because of a Chinese firm’s participation, two government officials said on Sunday, adding that this is being done to avoid unnecessary delays in the execution of key projects.

On Thursday, the Centre said that companies from nations that share a border with India will be barred from bidding for government contracts for goods and services until they register with the industry department. It said the decision was taken to “strengthen the defence of India and national security”; the move is being seen as an effort to counter China amid a tense border stand-off with the neighbouring nation. The order, which did not name any country, is applicable for all prospective tenders, and also for the tenders that have already been invited but not yet awarded.

The two government officials, who spoke on condition of anonymity, said an ongoing tender process will be scrapped only if one of the technically qualified bidders is a Chinese firm and it is also the lowest bidder.

Tender evaluations often have two parts -- technical qualification and price bid. A company emerges as a shortlisted bidder only after it meets all technical qualifications.