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India Poised to Lift 2020 Tender Curbs on Chinese Firms Pending PMO Approval

The finance ministry is acting on a Gauba panel’s advice following ministry reports of project delays.

Overview

  • Officials are preparing to scrap the registration requirement for bidders from bordering nations, according to Reuters’ government sources.
  • The proposal still needs sign-off from the Prime Minister’s Office, and there has been no official comment from the PMO or the finance ministry.
  • Rules imposed in 2020 after a deadly border clash required registration plus political and security clearances, effectively barring Chinese firms from roughly $700–$750 billion in contracts.
  • Government departments have cited equipment shortages and delays in infrastructure and energy projects, prompting a recommendation to ease curbs from a committee led by Rajiv Gauba.
  • An early consequence was the disqualification of China’s CRRC from a $216 million train contract, while separate curbs on Chinese FDI remain even as visas and flights have been restored.