Now, China out of India’s road projects as well! Gadkari bars Chinese companies from building highways

By: |
Published: July 1, 2020 4:34 PM

The Road Transport, Highways and MSME Minister, Gadkari said that for road construction, his ministry will not grant permissions to joint ventures that have Chinese partners.

Amid the ongoing border standoff with China, India will not allow Chinese companies to participate in highway projects.

Now, China out of India’s road projects as well! Amid the ongoing border standoff with China, India will not allow Chinese companies to participate in highway projects, including those through joint ventures. Union Minister Nitin Gadkari announced that the Modi government will make sure that investors from China are not entertained in various sectors like Micro, Small and Medium Enterprises (MSMEs), according to a PTI report. The Road Transport, Highways and MSME Minister, Gadkari said that for road construction, his ministry will not grant permissions to joint ventures that have Chinese partners. He also said that a policy will be issued soon banning Chinese companies and relaxing norms for Indian firms to expand their eligibility criteria for participation in highway projects.

At present, only a few projects which were undertaken much earlier involve some partners from China. Gadkari said that the new decision will be implemented in current as well as future tenders. Also, rebidding would be done if there are any joint ventures from China, the minister said.

While elaborating on the decision, the minister said if for a small project, a contractor can qualify, he can qualify for a large project as well. To ensure that domestic players do not require to enter into pacts with foreign partners to grab projects, qualification norms for projects are being rationalized.

According to the minister, even if India has to go for foreign joint ventures in the areas of technology, consultancy or design, the Modi government will not allow Chinese companies. While talking about the MSME sector, Gadkari said that his ministry’s effort is to enhance the capacity of local production. But at the same time, foreign investment is being promoted, he further stated.

Despite the decision to encourage foreign investment, investors from China will not be allowed, Gadkari clarified. For upgradation of research, consultancy, technology as well as other works, the government will encourage foreign investment and joint ventures in MSMEs but China will not be entertained, he said.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Delhi-Katra Expressway: Travel from Delhi to Katra in just 6.5 hours soon! Details here
2Purvanchal Expressway: Construction for one of India’s longest expressway in full swing! Over 50% work completed
3Rohtang Tunnel: Next month, PM Modi likely to inaugurate world’s longest highway tunnel above 10,000 feet