As part of the Corona Economic Relief package and in an effort to develop an Aatma Nirbhar or Self-reliant India, the government today announced that it will only allow Indian companies to participate in tenders up to Rs 200 crore. This was announced along with a slew of other measures to help micro, small and medium enterprises (MSMEs) battered by the coronavirus crisis.
“Indian MSMEs and other companies have often faced unfair competition from foreign companies. Therefore, global tenders will be disallowed in government procurement tenders up to Rs 200 crore,” Ms. Sitharaman said. The move to bar global procurement tenders in cases of government purchases is largely aimed at boosting the business of India’s MSMEs.
The decision, which will be formalized after necessary changes to existing law, will mean that foreign companies will no longer be able to bid for or take part in government procurement projects that are worth Rs 200 crore or less. This gap will be expectedly filled by local companies, boosting their ability to do business.
