Overview
- Government sources cited by Reuters say the Finance Ministry has drafted a plan to remove the 2020 registration requirement for bidders from land-border countries, with final approval pending from the PMO.
- The 2020 rules followed the Galwan clash and required registration plus political and security clearances, effectively shutting Chinese firms out of tenders estimated at $700–$750 billion.
- Departments have reported procurement bottlenecks and equipment shortages, particularly in the power sector that is targeting about 307 GW of thermal capacity over the next decade.
- A high-level committee involving former cabinet secretary Rajiv Gauba recommended easing the curbs, and officials expect other FDI and security safeguards to stay in place.
- Markets reacted to the report, with capital goods stocks weakening as analysts projected limited impact on large EPC firms but potential pressure on transformer-focused companies.