Tech transfer with China cos: DPIIT opposes relief

Citing representations from industry bodies that have expressed concern over the Department of Expenditure’s (DoE’s) decision last month, the DPIIT has resisted the “blanket exemption” to firms having transfer of technology (ToT) pacts with Chinese entities from mandatory registration with it and sought a review of the decision.

The Department for Promotion of Industry and Internal Trade (DPIIT) has sought a hold on the relaxations recently granted by the Finance Ministry, which had effectively allowed domestic companies having technology transfer arrangements with Chinese firms to bid for public projects.

Citing representations from industry bodies that have expressed concern over the Department of Expenditure’s (DoE’s) decision last month, the DPIIT has resisted the “blanket exemption” to firms having transfer of technology (ToT) pacts with Chinese entities from mandatory registration with it and sought a review of the decision.

In a communication to the DoE last week, the DPIIT argued that any such move will “provide an indirect route to the bidders having beneficial ownership in land border sharing countries to participate in public procurement in violation of the guidelines stipulated in the DoE order dated July 23, 2020”.

Following the Galwan clash, the DoE had last July amended the general financial rules (GFRs), restricting bidders from countries with which India shares land border from participating in government procurement tenders without approval from competent authorities. However, the Centre made an exception for bidders from nations to which India had extended a line of credit or was engaged in development projects. This effectively limited the curbs to only China and Pakistan. FE

Source: Read Full Article