The Centre has sought to tighten the screws on Chinese imports by releasing a registration format for bidders which includes a provision for security clearance from nations sharing a land border with India for their participation in the Government’s procurement process.

 
The evolution of a different investment regime for countries sharing a land border with India began in mid-April, before the Galwan Valley crises of June 15. But a different benchmark for imports was announced on July 23.

The registration format released by the Government will be an annual affair and is subject to certain terms and conditions.

“The bidders, who have beneficial ownership in countries which share land borders with India and intend to participate in public procurement in India, may submit applications for registration in the format,” said an office memorandum by the Department for Promotion of Industry and Internal Trade (DPIIT).

The bidders are also required to submit an application for security clearance.

The registration would be valid for a year but it will be cancelled and the company will be required to apply afresh in case of appointment of new directors with more than 10 per cent shares.

 
Besides seeking security clearance, the format seeks details of beneficial ownership, the manufacturer, the item, financial details for the last five financials and details of contracts received in the last five years in India.

In April, para 3 of the FDI policy was tweaked to make it compulsory for all countries and individuals with land borders with India to take the Government’s approval before investing. This was days after a Chinese Bank picked up shares of HDFC. Earlier these restrictions had applied only to investments from Bangladesh and India.

Daily Tribune:  24nd August, 2020