Restrictions on Public Procurement from certain countries

Restrictions on Public Procurement from certain countries

Question : Central Government amended the General Financial Rules 2017 on —
(a) 23 July 2020
(b) 25 July 2020
(c) 27 July 2020
(d) None of the above
Answer : (a)
Related facts

  • The Government of India today(23 July 2020) amended the General Financial Rules 2017 to enable imposition of restrictions on bidders from countries which share a land border with Indiaon grounds of defence of India, or matters directly or indirectly related thereto including national security.
  • As per the Order 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 Order takes into its ambit 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.
  • State Governments too play a vital role in national security and defence of India. 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.
  • Relaxation has been provided in certain limited cases, including for procurement of medical supplies for containment of COVID-19 global pandemic till 31st December 2020.

By — Pankaj Pandey.

Link:
https://pib.gov.in/PressReleasePage.aspx?PRID=1640778