India to ban Chinese companies from highway projects, says Union Minister Nitin Gadkari

Amid border standoff with China, Union Road Transport and Highways Nitin Gadkari on Wednesday said that India will not allow Chinese companies to participate in highway projects, including those through joint ventures.

Gadkari also said the government will ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs).

"We will not give permission to joint ventures that have Chinese partners for road construction. We have taken a firm stand that if they (Chinese companies) come via joint venture in our country, we will not allow it," Gadkari told PTI in an interview.

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"Even if we have to go for foreign joint ventures in the areas of technology, consultancy, or design, we will not allow Chinese," the Minister said.

The Road Transport Ministry will roll out a policy that will be out soon banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects, Gadkari said.

As for the existing tenders and future bids, Gadkari said rebidding would be done if there are any Chinese joint ventures.

The new decision will be implemented for current and future tenders he said adding that at present only a few projects which were undertaken much earlier involve some Chinese partners.

Directions have issued to Highway Secretary and National Highway Authority Chairman to hold a meeting with concerned stakeholders for relaxing technical and financial norms so that our companies can qualify to work," he said.

About the MSME sector, Gadkari said the effort is to enhance the capacity of local production but at the same time foreign investment is being promoted.

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However, he made it clear that despite decision to encourage foreign investment, Chinese investors would not be allowed.

"For upgradation of technology, research, consultancy and other works, we will encourage foreign investment and joint ventures in MSMEs but in case of Chinese we will not entertain them," he said.

On stopping of consignments from China at Indian ports, the minister said there is "no arbitrary stopping of goods" at Indian ports and the government is initiating path-breaking reforms to help MSMEs and businesses in a bid to make the country self-reliant.

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"It is a good step. The imports from China will be discouraged and the country will take large strides towards self-reliance," the Minister said and added that he is among the strongest proponents of 'Atmanirbhar Bharat'.

Gadkari said that he had urged departments concerned to expedite clearance of consignments which were booked two to three months in advance before the situation took its present shape.