UP tells its departments to ban bidders from ‘certain’ countries

The Uttar Pradesh government has ordered a ban on bidders from “certain countries” for public procurement” citing the Centre’s directions in this regard amid ongoing border tensions with China. No country has been named in the order aimed at bidders from the countries India shares borders with. The order does not cover the countries where India is engaged in development projects.

In an order dated August 26, joint secretary (finance) Sanjay Kumar Mishra asked all additional chief secretaries, principal secretaries and secretaries, to “take necessary action” regarding the matter.

Mishra also circulated a copy of a letter dated July 23 from the Union government’s secretary (expenditure) TV Somanathan, citing India’s national security and defence. “The government of India’s general financial rules have been amended to provide for restrictions on procurement from bidders from a country or countries or class of countries on grounds of defence of India or matters directly or indirectly related thereto, including national security…. Keeping in view the circumstances, it is imperative for the defence of India and national security that the same restrictions be applied in respect of procurement by state governments and their public undertakings, as well as in public private partnership projects receiving financing from state governments,” said Somanathan.

The Centre has asked the state government to set up a competent authority for prior registration of bidders.

In another order, department of expenditure’s public procurement division joint secretary, Sanjay Prasad, clarified the ban order will not affect the bidders from neighbouring countries where India is engaged in development projects.

“We have forwarded the Union government’s letter directly to the departments to avoid any confusion. We are not sure how many bidders will be affected by the decision,” said a state government official on condition of anonymity.