Public Procurement and Bidders from Land Border Countries
The standing committee on public procurement, chaired by the secretary to the Department for Promotion of Industry and Internal Trade (DPIIT), is addressing a backlog of applications for bidder registration from countries sharing land borders with India.
Pending Applications and Recommendations
- Of the 775 applications received, 506 were incomplete, and deficiency letters were issued.
- 269 applications were reviewed:
- 17 registrations were granted.
- 148 applications were rejected.
- 104 remain pending, awaiting comments from nodal ministries or other councils.
- The standing committee has urged nodal ministries to submit recommendations within 30 days of receiving applications to expedite processing.
Mandate and Criteria for Bidding
- As of February 2023, bidders from countries with shared land borders with India must register with the DPIIT committee to participate in procurement.
- This requirement also extends to Indian bidders with Specified Transfer of Technology (ToT) arrangements with such countries.
- The amendment aligns with Press Note 3 of 2020, imposing government clearance on investments from land-bordering countries, especially post the 2020 Galwan Valley clashes with China.
Pending Applications by Ministry
- Ministry of Health and Family Welfare: 16 applications pending
- Ministry of Petroleum and Natural Gas: 14 applications pending
- Ministry of Steel: 11 applications pending
- Department of Financial Services: 8 applications pending
Comments by Stakeholders
- Ajay Dua, former industry secretary, emphasized the need for a 30-day deadline for the Ministries of Home and External Affairs due to lengthy security clearance processes.
- He noted that Chinese entities offer competitive pricing, aiding government cost reduction.
Public Procurement in India
- Public procurement constitutes 20-22% of India's GDP.
- The Government e-Marketplace (GeM) reported a gross merchandise value (GMV) of Rs 4 trillion for FY24, doubling the previous year's GMV.