NO HIGHWAY

India will not allow Chinese companies to participate in highway projects, including those being funnelled through joint ventures, Union Minister Nitin Gadkari said on Wednesday amid the border standoff with China.

Gadakri also said the government will ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs).

"We will not give permission to joint ventures that have Chinese partners for road construction. We have taken a firm stand that if they (Chinese companies) come via a joint venture in our country, we will not allow it," Gadkari told PTI in an interview.

The Road Transport, Highways and MSME minister said a policy will be out soon banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects.

Currently, only a few projects which were undertaken much earlier involve some Chinese partners. When asked about this, the Minister said that the new decision will apply to current and future tenders.

With respect to existing tenders and future bids, Gadkari said rebidding would be done if there are any Chinese joint ventures.

"We have taken a decision to relax norms for our companies to ensure that they qualify for bidding in large projects. I have directed the Highways Secretary (Giridhar Aramane) and NHAI Chairman (SS Sandhu) to hold a meeting for relaxing technical and financial norms, so that our companies can qualify," he said.

Elaborating on the decision, Gadkari said if a contractor can qualify for a small project, he can also qualify for a large project. Qualification norms for projects were accordingly being rationalised to ensure Indian companies do not need to enter into foreign collaborations to secure projects.

"Even if we have to go for a foreign joint venture in areas of technology, consultancy or design, we will not allow Chinese," the Minister said.

In the MSME sector, Gadkari said the effort is to enhance the capacity of local production; but, at the same time, foreign investment is being encourage. However, Chinese investors would be kept out.

On stopping of consignments from China at Indian ports, the minister said there is "no arbitrary stopping of goods." He also said the government is initiating path-breaking reforms to help MSMEs and businesses in a bid to make the country self-reliant.

"It is a good step. The imports from China will be discouraged and the country will take large strides towards self-reliance," the Minister said and added that he is among the strongest proponents of 'Atmanirbhar Bharat'.

There are reports that customs authorities at Chennai and Vishakhapatnam ports are conducting extra scrutiny of consignments from China. Most of these equipment, as per information, pertain to spraying devices for pesticide control as the same had been diverted to urban areas during the COVID19 pandemic outbreak.

Amid heightened border tensions with China, Indian customs officials have started physical inspection of all consignments coming from the neighbouring country, especially at Chennai and Vishakhapatnam ports. –PTI