No Chinese Companies To Be Allowed In Highway Projects: Nitin Gadkari

A policy will be formulated and released banning China-origin firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects.

India   |   2 July 2020 10:43 AM GMT / Updated : 2020-07-03T09:49:08+05:30
Writer : Palak Agrawal | Editor : Prateek Gautam | Creatives : Abhishek M
No Chinese Companies To Be Allowed In Highway Projects: Nitin Gadkari

Image Credits: Financial Express

Union Minister of Road Transport & Highways, Nitin Gadkari, on Wednesday, July 1, said that the Indian government will not allow Chinese companies to participate in highway projects, including those through joint ventures.

A joint venture is a business entity which is jointly undertaken and owned by two or more parties which shared ownership, shared risks and returns.

The minister also said that the government will prevent Chinese investment in various sectors like Micro, Small and Medium Enterprises (MSMEs) which form the crux of India's manufacturing sector.

"We will not give permission to joint ventures that have Chinese partners for road construction. We have taken a firm stand that if they (Chinese companies) come via joint venture in our country, we will not allow it," said Mr Gadkari told Press Trust of India in an interview.

He added that a policy will be formulated and released banning China-origin firms and relaxing norms for Indian companies to expand their eligibility criteria for participation in highway projects.

Hinting at a mid-way solution for existing tenders involving Chinese companies and for future bids, Gadkari said that rebidding would be done if there are any Chinese joint ventures.

"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," he said.

He further said that if a contractor can qualify for small projects, he can also qualify for a large project and revised policies would aid in the process.

"Construction norms are not good so I have asked to change it. We are changing it so that we can encourage Indian companies," the minister said.

"Even if we have to go for foreign joint venture in the areas of technology, consultancy or design, we will not allow Chinese," he added.

Furthermore, Chinese investment will not be entertained even for the up-gradation of technology, research, consultancy and other works

The minister's statements come in the backdrop of the border dispute between India and China in Ladakh's Galway Valley which reported the death of 20 Indian army soldiers.

Amid escalating tensions, the government on Monday, June 29, banned 59 mobile applications vested with Chinese interest, citing threats to national security.

Also Read: Railways Starts Process To Let Private Entities Operate Passenger Trains

Suggest a correction

    Help Us Correct

    To err is human, to help correct is humane
    Identified a factual or typographical error in this story? Kindly use this form to alert our editors
  • *
  • *
  • *
  • Form Submitted Successfully
    Error in submitting form. Try again later

Contributors

Palak Agrawal

Palak Agrawal

Digital Journalist

Palak a journalism graduate believes in simplifying the complicated and writing about the extraordinary lives of ordinary people. She calls herself a " hodophile" or in layman words- a person who loves to travel.

Prateek Gautam

Prateek Gautam

Digital Editor

A free soul who believes that it is journalism apart from politics which should stand for the social cause and environment

Abhishek M

Abhishek M

Creative Producer

" An engineer by profession, Abhishek is the creative producer of the team, graphic designing is his passion and travelling his get away. In more ways than one, he makes the content visually appealing."

Next Story