Industrial Automation Magazine India

IEEMA welcomes Government Policy on bidding regulations for border sharing countries

Published on : Saturday 25-07-2020

The Government has directed state governments to implement this order for all public procurement.

July 24, 2020 The government has amended the General Financial Rules 2017 to impose restrictions on bidders from countries sharing a land border with India. The curbs have been imposed on procurement of public projects on the grounds of matters directly or indirectly related to "national security". IEEMA welcomes this move of Government of India and assures of full support on behalf of its members to meet the requirements of the Country. India shares a land border with seven countries, including China, Pakistan, Bhutan, Myanmar, Afghanistan, Nepal and Bangladesh. As per the order, issued by the Department of Expenditure, 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 they are registered with the Competent Authority, which 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.

With Prime Minister Narendra Modi's 'Atma Nirbhar Bharat' call, the government is also cutting dependence on China to encourage manufacturing in the country. Welcoming this move of the Government Mr RK Chugh, President, IEEMA says, "Indian electrical equipment industry has the capacity, ability and cost competitiveness to effectively service and meet the need of not only Indian industry but also enhance its exports. And if we as a nation are to be serious about taking on China in our own home market, then all of us — manufacturers, importers, retailers, consumers and the government — need to commit to this."

Mr Vipul Ray, Senior Vice President, IEEMA articulates, "National security is of paramount importance and in today's connected world we as a nation have to be very vigilant and careful in what in install into our systems. Electrical industry is even more vulnerable considering the nature of the technology and the wide spread ramifications that it can have if something goes wrong as it has the potential to disrupt every aspect of life whether it be hospitals, telecommunications or industrial production. "

Mr Rohit Pathak, Vice President, IEEMA is of the opinion that, "This is a turning point for the Indian electrical equipment industry. We have the capability and are competitive versus the Chinese players in the global market. However, with predatory pricing the Chinese had been partially successful at weakening the Indian players in our home market strategically over the past decade while simultaneously blocking Indian exports into China. I believe that with this move, the Indian electrical industry will benefit significantly in the medium term by gaining the scale in the domestic market and leveraging it to further enhance our global competitiveness. "

Indian electrical industry in the past has demonstrated entrepreneurship, innovation, brilliance in manufacturing and IEEMA is sure that the present challenge will be accepted with resolve and commitment. IEEMA is committed to further the interest of our Industry and that of the Nation.