With an eye on China, the Centre tonight placed new restrictions on public procurement from countries sharing borders with India.
The restrictions come a day after US Secretary of state Mike Pompeo urged India to reduce its dependence on China by focusing on domestic supply chains.
It amended the General Financial Rules of 2017 to impose restrictions on bidders with countries that share ground borders with India on grounds of defence and national security.
A bidder from countries sharing borders with India will be eligible to bid in any government procurement only if he is registered with the competent authority to be decided by the commerce ministry.
Political and security clearances shall have to be taken from the Ministry of External and Home affairs.
It came through the amendments in the General Financial Rules of 2017 to impose restrictions on bidders with countries that share ground borders with India on grounds of defence and national security.
The new provision will apply to all new tenders barring procurement of medical supplies aimed at containment of Covid-19 till December 31.
The order also takes into its ambit the public sector banks, financial institutions, PSUs and bodies receiving financial support from the government.