India will not allow Chinese firms to participate in highway projects: Gadkari
India gave yet another jolt to China on economic front with the Centre dumping off Chinese firms involved in road and highways projects across the country.
Union Minister Nitin Gadkari said the Indian Government will not allow Chinese companies to participate in highway projects and they would not be able to take part in joint ventures as well.
The Centre recently terminated a contract in Indian Railways worth Rs 471 crore with a Chinese company. BSNL too announced to terminate the contract with a Chinese company to set up 4G services. The Department of Telecom has also decided not to let Huawei to take part in 5G spectrum testing.
“The Government is going to ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs). We will not give permission to joint ventures that have Chinese partners for road construction. We have taken a firm stand that if they (Chinese companies) come via a joint venture in our country, we will not allow it,” Gadkari said.
Gadkari said soon a policy would be out to ban Chinese firms from taking part in highway projects. He said the system would aim at relaxing norms for the Indian companies to expand their eligibility criteria for such projects.
Currently only a few projects which were undertaken much earlier involve some Chinese partners. Gadkari said the new decision will be implemented in current and future tenders and with respect to existing tenders and future bids. He said rebidding would be done if there are any Chinese joint ventures.
“We have taken a decision to relax norms for our companies to ensure that they
qualify in bidding in large projects. I have directed the Highways Secretary (Giridhar Aramane) and NHAI Chairman (SS Sandhu) to hold a meeting for relaxing technical and financial norms so that our companies can qualify to work,” he said.
Elaborating on the decision, Gadkari said if a contractor can qualify for a small project, he can also qualify for a large project. “Construction norms are
not good so I have asked to change it. We are changing it so that we can encourage Indian companies,” he added. According to him, qualification norms for projects are being rationalised to ensure Indian companies do not require to enter into pacts with foreign partners to grab projects.
“Even if we have to go for foreign joint venture in the areas of technology, consultancy or design, we will not allow Chinese,” the Minister said.
The RTH Minister also said while the Government is encouraging foreign investment and joint ventures in MSMEs, the Chinese companies will not be entertained for the same. He said this step is in sync with the vision of Prime Minister Modi to build a “self-reliant India” or Atmanirbhar Bharat.
“For upgradation of technology, research, consultancy and other works, we will encourage foreign investment and joint ventures in MSMEs but in case of Chinese we will not entertain them,” he said.
On stopping of consignments from China at Indian ports, the Minister said there is “no arbitrary stopping of goods” at Indian ports and the Government is initiating path-breaking reforms to help MSMEs and businesses in a bid to make the country self-reliant.
“It is a good step. The imports from China will be discouraged and the country will take large strides towards self-reliance,” the Minister said and added that he is among the strongest proponents of “Atmanirbhar Bharat”.
There are reports that customs authorities at Chennai and Vishakhapatnam ports are conducting extra scrutiny of consignments from China.
Gadkari did not mention the name of the country from where these equipment were imported.
“Indian business has the strength and skills to grow further and power our journey towards self-reliance. Under strong leadership of PM Narendra Modi, the Government of India is proactive and initiating path-breaking reforms that will help businesses and MSMEs,” he said.
Most of these equipment, as per the information, pertain to spraying devices for pesticide control as the same had been diverted to urban areas during the Covid-19 pandemic outbreak.
Amid heightened border tensions with China, Indian customs officials have started physical inspection of all consignments coming from the neighbouring country specially Chennai and Vishakhapatnam ports.