Page 55 - ELT_1st July 2020_Vol 373_Part 1

2020 ] TIT-BITS A29

The Government will consider measures to curb Chinese imports while
simultaneously providing an environment for the domestic production of such
goods.
India will also review its free trade agreements with other countries to
see if they are being used by China to access the local market. India has already
walked out of the negotiations on the Regional Comprehensive Economic Part-
nership (RCEP), which includes China among others, reasoning that there is no
safeguard against a further rise in exports from that country to India. Stringent
quality standards and checks could also be introduced to contain the inflow of
goods from the country.
Infra contracts
One set of likely measures is aimed at preventing Chinese companies
from participating in contracts for infrastructure projects, Government officials
said. This includes the introduction of a clause based on the principle of reciproc-
ity that would seek to restrict participation of companies from countries where
Indian companies face curbs in applying for contracts.
Various options are being examined by the Law Ministry on the exact
contours of the clause to ensure it cannot be challenged and meets international
norms. The omnibus clause could cover all countries, the official said, though it is
primarily aimed at Chinese companies.
One of the first sectors to introduce the clause could be roads and high-
ways before it is expanded to others and eventually includes public sector units,
said the officials. The Ministries of Road Transport and Highways and Law are
already in discussions to finalise the wording of the new clause, one official said.
The Government has moved to scrap and rework contracts floated by
State-owned telecom companies Bharat Sanchar Nigam Ltd. (BSNL) and Ma-
hanagar Telephone Nigam Ltd. (MTNL) to keep out Chinese equipment suppli-
ers over security concerns.
Additional criteria could be introduced to ensure that contracts awarded
by the Government as also public sector entities are secured by Indian suppliers
of goods and services.
The Law Ministry is examining the feasibility of introducing such a
clause in contracts in line with restrictions or stringent conditions imposed by
some other countries on Indian companies from participating in contracts. “The-
se stiff criteria essentially are barriers to ensure that only local companies can
participate,” the official said, adding that such restrictions imposed by other
countries are also being examined in detail.
Atmanirbhar Mission
The exercise had already been underway as part of the Government’s
Atmanirbhar, or self-reliance, mission and has gained in importance in the wake
of changed circumstances at the border, he said.
The Cabinet Secretary, who also chairs a committee on boosting local
manufacturing, has held discussions with various Ministries that deal with infra-
structure projects on how to increase local sourcing of both goods and services.
The lowest bidder is generally accorded prior security clearance but
there’s a growing view that a more stringent framework is needed, said the offi-
cial cited above.
EXCISE LAW TIMES  1st July 2020  55