Union Minister Gadkari bans Chinese companies from highway projects

India will not allow Chinese companies to participate in highway projects, including those through joint ventures, Union Minister Nitin Gadkari said amid border standoff with China. He further said the government will ensure that Chinese investors are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs).

Amid escalating tensions, the government banned 59 apps, mostly having Chinese links, citing threats to national security.

The Road Transport, Highways and MSME minister said a policy will be out soon banning Chinese firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects. With respect to existing tenders and future bids, Gadkari said rebidding would be done if there are any Chinese joint ventures.

He said, "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.”

Gadkari also said if a contractor can qualify for a small project, he can also qualify for a large project. According to him, qualification norms for projects are being rationalised to ensure Indian companies do not require entering into pacts with foreign partners to grab projects.

About the MSME sector, Gadkari said the effort is to enhance the capacity of local production but at the same time foreign investment is being promoted.

However, he made it clear that despite decision to encourage foreign investment, Chinese investors would not be allowed.

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.

Gadkari said that he had urged departments concerned to expedite clearance of consignments which were booked two to three months in advance before the situation took its present shape.