The government of India has tightened economic security regulations by restricting both domestic and foreign corporate entities from directly participating in any "commercial arrangement" with hostile nations bordering India. This has also been conveyed to all states, according to two people with knowledge of the situation mentioned on Wednesday.
The Centre has already changed its July 2020 orders and made prior screening and registration of any bidders who have any kind of business agreements with organisations of countries that border India on land, they mentioned while requesting anonymity as reported by HT.
On July 23, 2020, without naming any, the government imposed restrictions on procurement for public projects from companies in countries that have a land border with India, stating national security.
Due to growing security concerns, the Union administration recently sent a directive to all states urging them to ask for approval before engaging in any business contracts with hostile neighbour countries, they added.
According to the second source, the decision was made in light of security advice from agencies that were received well in advance of the terror attack in Israel on October 7. This is the cause of several private infrastructure projects in some states currently being stalled, he said.
(with inputs from agencies)
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