Chinese manufacturers that have invested in India to set up manufacturing facilities via the foreign direct investment route will need a fresh security check to be eligible for government contracts, a move that will impact phone and computer-makers as well drug and other equipment manufacturers.
This is a fallout of the revised guidelines issued by the finance ministry late Thursday evening, requiring bidders from any country sharing a land border with India to register with a “competent authority” to be eligible for government contracts.
With an exception made for bidders from countries where India has extended a line of credit or is engaged in development projects, Nepal, Bhutan and Bangladesh would be exempted.
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