Hindustan Times (Delhi)

Curbs on procuremen­t from border countries

- Rajeev Jayaswal letters@hindustant­imes.com

nNEW DELHI: The finance ministry on Thursday made an important amendment in its public finance rule that barred all government agencies to procure goods and services from bordering countries such as China and Pakistan on the ground of national security, two officials said, requesting anonymity.

“The Government of India today amended the General Financial Rules (GFR) 2017 to enable imposition of restrictio­ns on bidders from countries which share a land border with India on grounds of defence of India, or matters directly or indirectly related thereto including national security,” the finance ministry said in a statement.

The GFR laws regulate all matters related to public finance.

The order takes into its ambit all public sector companies, autonomous bodies and publicpriv­ate partnershi­p (PPP) projects receiving financial support from the government, it said. State government and its undertakin­gs have been also directed to follow the suit.

The Department of Expenditur­e,

an arm of the finance ministry, issued two separate orders on late Thursday night. While the first order barred public procuremen­ts from countries sharing land-borders with India, the second gave exemptions to certain neighbours whom India offers lines of credit. According to the officials mentioned above, they could be neighbours such as Nepal and Bhutan.

Bidders from countries that are barred could bid in any procuremen­t whether of goods, services, including consultanc­y services only if the bidder is registered with “the Competent Authority”, the statement said.

“The Competent Authority for registrati­on will be the Registrati­on Committee constitute­d by the Department for Promotion of Industry and Internal Trade. Political and security clearance from the Ministries of External and Home Affairs respective­ly will be mandatory,” it said.

Relaxation has been provided in certain limited cases, including for procuremen­t of medical supplies for containmen­t of Covid-19 global pandemic till December 31, 2020.

The new provisions will apply to all new tenders, it said.

 ?? PTI ?? An army convoy in Leh on July 12. n
PTI An army convoy in Leh on July 12. n

Newspapers in English

Newspapers from India