Weeks after the Indian and Chinese troops clashed at Line of Actual Control (LAC) and continued aggression by the Chinese, India has banned all types of government contracts being awarded to Chinese companies, directly or indirectly. For this, on July 23, 2020, the government 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. Immediately, thereafter, the department of expenditure issued an order detailing therein its implementation.
Any bidder from such countries sharing a land border with India will be eligible to bid in any procurement only after prior registration with the Registration Committee constituted by the Department for Promotion of Industry and Internal Trade (DPIIT).
