Relaxations on firms sharing Chinese tech sought to be delayed

New Delhi: The relaxations granted to domestic companies, which have technology transfer arrangements with Chinese companies, were asked to be put on hold by the Department for Promotion of Industry and Internal Trade (DPIIT), reports The Indian Express. The DPIIT sought the same at the Finance Ministry, which had recently granted the relaxations to domestic companies to bid for public projects.

The DPIIT, citing representations of concern from industry bodies, sought a review of the Department of Expenditure's (DoE) decision last month that granted a "blanket exemption" to firms that keeps technology transfer pacts with Chine firms. Last week, the DPIIT told the DoE that any kind of similar relaxations would "provide an indirect route to the bidders having beneficial ownership in land border sharing countries to participate in public procurement in violation of the guidelines stipulated in the DoE order dated July 23, 2020."

After the clashes with China in Galwan valley, the DoE had amended the general financial rules in July last year. It restricted bidders from countries with which India shares land borders from participating in government procurement tenders without approval from competent authorities. As the union government made an exception for bidders from nations to which India had extended a line of credit or was engaged in developmental projects, curbs were limited to only China and Pakistan.