The Government of India has amended the General Financial Rules 2017 to enable imposition of restrictions on bidders from countries which share a land border with Indian grounds of defence of India, or matters directly or indirectly related thereto including national security.
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 the bidder is registered with the Competent Authority.
The Competent Authority for registration 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.
The Government of India has written to the Chief Secretaries of the State Governments invoking the provisions of Article 257(1) of the Constitution of India for the implementation of this Order in procurement by State Governments and state undertakings etc.
For State Government procurement, the Competent Authority will be constituted by the states but political and security clearance will remain necessary.