Ongoing highway projects unaffected in India-China standoff

The ongoing highway projects in India involving Chinese companies are likely to remain unaffected amid the ongoing standoff between the two Asian neighbours.

The move comes after Indian Road Transport and Highways Minister Nitin Gadkari announced that Chinese companies will be prohibited from bidding on road projects in India. The ban will also extend to all Chinese joint ventures.

According to a Business Standard report, the National Highways Authority of India (NHAI) will allow any ongoing projects to be completed. However, fresh contracts will not be issued to Chinese firms.

“There are ten to 12 projects being executed by Chinese companies in joint ventures with Indian firms,” an official told the publication.

Since May, the Indian and Chinese armed forces have been engaged in a military standoff at several locations along the border.

The face-off led to fighting last month in Galwan Valley, killing 20 Indian soldiers. The Chinese side also confirmed casualties but did not disclose the numbers.

Following the violent clash, India cancelled several contracts across sectors amid growing calls for the boycott of Chinese goods and services across the country.

In an interview to PTI, Minister Gadkari said: “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.”

He also said that the government will devise a new policy that will relax eligibility criteria for Indian companies, enabling greater participation of local firms in road projects.

The government is also planning to implement another regulation that will require all foreign firms to take prior security clearance from the authorities to bid for any road project, reported The Time of India.