Overview
- The Finance Ministry is preparing to remove the registration requirement for bidders from land‑bordering countries, with the final decision awaiting approval from the Prime Minister’s Office.
- The 2020 procurement change, introduced after the Galwan clash, required such bidders to register and obtain political and security clearances, effectively excluding Chinese firms from tenders worth an estimated $700–$750 billion.
- A committee led by former cabinet secretary Rajiv Gauba recommended easing the rule after ministries reported delays and shortages, particularly affecting plans to lift thermal power capacity to roughly 307 GW.
- Markets reacted to the reports as BHEL fell 10.5% and L&T declined 3.1%, with analysts projecting minimal impact for L&T but potential pressure on transformer makers.
- Congress leader Jairam Ramesh condemned the move as a policy reversal and demanded an explanation from Prime Minister Narendra Modi in Parliament.