Ministry of Commerce issues new rules for bids from neighbouring nations
NEW DELHI: The Ministry of Commerce and Industry has issued a new registration format for bidders from nations sharing a land border with India who want to participate in the public procurement process.
According to the Department for Promotion of Industry and Internal Trade’s (DPIIT) office memorandum on Tuesday, a bidder has to submit details on beneficial ownership; manufacturer and service provider; financial details for the last five fiscal years duly certified by a practicing chartered account in India; and details of contracts received in the last five years.
The rules have also restricted ownership patterns for new directors or shareholders for such bidder companies. “In case of appointment of new director(s)/new shareholders with more than 10 per cent shares/change in controlling ownership interest or control through other means, the registration shall stand cancelled,” it added.
Last month on July 23, the government had mandated that any entity from a country sharing a land border with India would be eligible to bid in any procurement process for goods or services only if it is registered with the competent authority. This was decided with the aim of restricting participation from Chinese companies in sensitive public projects.
Now, bidders are also required to submit an application for security clearance, as per the format. The validity period of the registration would be 12 months from the date of issue. The government has amended the General Financial Rules 2017 to enable the imposition of these curbs.