The Department for Promotion of Industry and Internal Trade (DPIIT<\/a>) wants the Department of Expenditure<\/a> (DoE) to withdraw a relaxation allowing domestic companies that have technology transfer arrangements with Chinese companies to bid for public projects, wary of a backdoor entry by entities from across the border.

This relates to a June 8 office memorandum issued by the DoE that said last year's order wouldn't apply to domestic bidders having transfer of technology (ToT<\/a>) arrangements with entities from a country sharing a land border with India<\/a>. The government last year restricted companies based in nations sharing a land border with India from investing in the country and participating in public projects. The measures were aimed largely at Chinese companies.

The DPIIT, in a June 28 communication to the DoE, said it has received representations from stakeholders alleging that the June 8 clarification is against the basic purpose and intent of the earlier order issued last year in July.

\"Blanket exemption from registration to bidders having ToT arrangements 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 DoE order dated July 23, 2020,\" the DPIIT said.