Centre relaxes Land Border norms for BHEL tenders

India has removed guardrails on companies based in the neighbourhood bidding for Bharat Heavy Electricals Limited (BHEL) projects. A Committee of Secretaries (CoS) has granted a five-year relaxation to BHEL tenders for 21 items from Rule 144(xi) of General Financial Rules, 2017, officials said. Sector watchers say this exemption will allow Chinese bidders to participate in BHEL tenders.

“Exempted critical items cover a vast range of advanced industrial materials that are not readily available in the required quantities in the country,” a senior official told ET.

These include Cold-Rolled Grain-Oriented (CRGO), and High-quality sulfate insulating Capacitor Paper. The exemption also covers specialised components like generator, along specific grades of alloy and carbon steel seamless pipes, tubes, and steel plates with high thickness. An Air Cooled Condensor is also listed among these critical inputs.

BHEL’s order inflow stood around Rs 45,900 crore up to Q3FY26. The public sector undertaking has an outstanding order book of Rs 2.23 lakh crore broadly spread across power, defence, and mobility verticals.

This five-year relaxation is from prior registration requirements mandated for bidders from countries sharing a land border with India.

The Union Cabinet approved changes in guidelines on investments from countries sharing land border with India (LBCs) earlier this month. Under amendments to the country’s Foreign Direct Investment (FDI) policy. Investors with non-controlling LBC Beneficial Ownership of up to 10 percent shall be permitted under the automatic route as per the applicable sectoral caps, entry routes, attendant conditions.