India imposes restrictions on bidders from neighbouring countries for public procurement

IEEMA welcomes this government policy on bidding regulations for national security reasons. Bidders from these countries will be eligible only if they are registered with DPIIT. Government has provided relaxation for procurement of COVID medical supplies till December 31.
India imposes restrictions on bidders from neighbouring countries for public procurement
New Delhi

The government has amended the General Financial Rules 2017 to impose restrictions on bidders from neighbouring countries sharing a land border with India. The curbs have been imposed on procurement of public projects on the grounds of matters directly or indirectly related to "national security". Indian Electrical and Electronics Manufacturers' Association (IEEMA) has welcomed this move of Government of India and has assured full support on behalf of its members to meet the requirements of the country.

India shares a land border with seven countries, including China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal and Bangladesh. As per the order, issued by the Department of Expenditure, 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 they are registered with the Competent Authority, which 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.

With Prime Minister Narendra Modi's ' Atmanirbhar Bharat' call, the government is also cutting dependence on China to encourage manufacturing in the country. Welcoming this move of the Government, R K Chugh, President, IEEMA, said, “Indian electrical equipment industry has the capacity, ability and cost competitiveness to effectively service and meet the need of not only Indian industry but also enhance its exports. And if we as a nation are to be serious about taking on China in our own home market, then all of us - manufacturers, importers, retailers, consumers and the government - need to commit to this. And more importantly, be prepared for both the consequences and costs of such a move at least in short run. From medium term onwards, we will start seeing enormous benefits out of full Make in India efforts.”

Vipul Ray, Senior Vice President, IEEMA, articulated, “National security is of paramount importance and in today’s connected world we as a nation have to be very vigilant and careful in what in install into our systems. Electrical industry is even more vulnerable considering the nature of the technology and the wide spread ramifications that it can have if something goes wrong as it has the potential to disrupt every aspect of life whether it be hospitals, telecommunications or industrial production. We wholeheartedly support and stand by the nation and the government in the interest of National Security. Indian industry is capable to deploy its own solutions and will surely rise up to the occasion and delivery when it matters the most.”

Rohit Pathak, Vice President, IEEMA, added, “This is a turning point for the Indian electrical equipment industry. We have the capability and are competitive versus the Chinese players in the global market. However, with predatory pricing the Chinese had been partially successful at weakening the Indian players in our home market strategically over the past decade while simultaneously blocking Indian exports into China. I believe that with this move, the Indian electrical industry will benefit significantly in the medium term by gaining the scale in the domestic market and leveraging it to further enhance our global competitiveness. I have full confidence that as an industry we will commit to this challenge of not just making India Aatmanirbhar but also be the global supplier of choice in this sector.”

Indian electrical equipment industry in the past has demonstrated entrepreneurship, innovation, brilliance in manufacturing and Indian Electrical and Electronics Manufacturers' Association (IEEMA) is sure that the present challenge will be accepted with resolve and commitment. IEEMA is committed to further the interest of Indian industry and that of the nation.
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