In the series of diplomatic actions against China, now India will ban Chinese companies from taking part in the highway projects in India.
Let us understand this update in detail.
Reason for India ban on Chinese companies in highway projects
After the clash in the Galwan valley, the relationship between India and China has now snapped. Now, the Indian government has taken one more big step. India will ban Chinese companies from taking part in the highway projects in India.
Minister for Road Transport & Highways and Micro, Small & Medium enterprises Sh Nitin Gadkari has stated-
“The government will make sure that from now onwards, no Chinese investors will be entertained in industries like the MSMEs.”
The government had recently also banned 59 Chinese apps in India.
At the Galwan valley, 20 Javaans have sacrificed their lives while defending Indian Border. As a result, the government has decided to reject the permission of all those companies who are willing to join ventures for the road constructions having Chinese people as their partners.
Enforcement of India ban on Chinese companies
In a PTI interview, Nitin Gadkari stated that he would not allow any Chinese firm to work on the road development projects. The Road Transport, MSMEs and Highways departments will soon disclose policies that will have the confirmation of banning Chinese firms.
New growth opportunities for MSMEs
New opportunities to take participation in making the highways will be now given to the Indian enterprises having Udyam MSME registration.
Currently, the project on which work is already going on includes a few Chinese partners. The Minister said that he said that soon there would be new decisions to come. Looking at the current projects going on and at that time, the government will encourage future ventures.
Explaining the statement further, Gadkari Ji said that there are contractors who are working on small development projects. Surely, they will get the chance if they have experience at a small scale.
Moreover, Indian enterprises can now get easy Udyam MSME registration.
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