Centre imposes restrictions on bidders from nations sharing land borders

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News: 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 India on grounds of defence and national security.

Facts:

  • What does the order say? The order says that any bidder from countries sharing a land border with India will be eligible to bid in any procurement whether of goods, services or works only if the bidder is registered with the Competent Authority.
  • Who is 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). 
    • They will also be required to take mandatory political and security clearance from the Ministries of External Affairs and Home.
  • Coverage: The order covers public sector banks and financial institutions, Autonomous Bodies, Central Public Sector Enterprises (CPSEs)and Public Private Partnership projects receiving financial support from the Government or its undertakings.
  • Exception: The countries to which the Government of India extends lines of credit or provides development assistance have been exempted from the requirement of prior registration.

Additional Facts:

  • General Financial Rules(GFRs): These are a compilation of rules and orders of Government of India to be followed by all while dealing with matters involving public finances. 
  • These rules and orders were issued for the first time in 1947 and are treated as executive instructions to be observed by all Departments under the Government except otherwise provided for in these Rules.