The Government of India has extended the exemption it had earlier given to COVID-19 related supplies from additional checks if the items are supplied from a country sharing a land border with India. The Centre released a memorandum on Wednesday announcing the extension till the end of October. The exemption had first been granted in view of the increased demand for medical supplies after the COVID-19 pandemic hit the country.
It may be recalled that in July 2020, the government had amended the General Financial Rules, 2017 with an eye on China. It was announced that for public procurement of goods and services if any bid is received from a company belonging to a country that shares a land border with India, it would have to receive the approval of a government-created panel. The move was aimed at enhancing national security by discouraging Chinese entry into sectors crucial for the country’s security. The amendment was made in the aftermath of the Galwan Valley clash with China where soldiers from both countries were killed in hand-to-hand combat.
However, with an increase in COVID-19 cases across the country, the demand for medical supplies went up. Considering that a large amount of medical equipment and raw materials for medicines are procured from China, the Indian government granted an exemption to the amended rules till the end of 2020.
Under the amended rules, all applications are vetted by a committee formed by the department for promotion of industry and internal trade. Only bidders possessing a compliance certificate can take part in the tendering process.
Apart from medical supplies, experts have also expressed concern for sectors like infrastructure, electronics and renewable energy which are dependent on Chinese imports.
