Crude Oil
Indian state-owned refiners stop import from China-linked companies: Report
New Delhi/IBNS: Indian state-owned refiners have stopped importing crude oil from China-linked companies, a Reuters report said, adding that the development is linked to the restrictions imposed by New Delhi on imports from countries it shares common borders.
The order issued on July 23 came after a violent face-off with China on Line of Actual Control (LAC) in Ladakh's Galwan valley in which 20 Indian soldiers were martyred.
After the new rules, the state-run refineries have been inserting a clause in their import tenders restricting dealings with countries bordering India, the Reuters report said, citing sources and tender documents.
The Ministry of Finance amended the General Financial Rules 2017, restricting bidders from countries sharing a land border with India, citing concerns related to the defence of India, or matters directly or indirectly related to the national security of the country.
Public sector banks and financial institutions, Autonomous Bodies, Central Public Sector Enterprises (CPSEs) and Public-Private Partnership projects receiving financial support from the government or its undertakings were included in the order.
"As per the Order any bidder from such countries sharing a land border with India will be eligible to bid in any procurement whether of goods, services (including consultancy services and non-consultancy services) or works (including turnkey projects) only if the bidder is registered with the Competent Authority," the government had stated.
The Reuters report said the PSU oil refiners stopped sending crude import tenders to Chinese trading firms like CNOOC Ltd, Unipec, and PetroChina, among others.
India shares borders with Bangladesh, China, Pakistan, Nepal, Myanmar, and Bhutan.
State refiners account for 60 per cent of India’s 5 million barrel-per-day refining capacity.
India, which imports 84 per cent of its oil needs, is the third-biggest oil consumer and importer.
China does not import crude to India but Chinese firms are major traders of the commodity, said the Reuters report.
Chinese companies also hold equity stakes in many oil fields across the globe, including the Middle East, Africa and the Americas, and often bid in crude import tenders by Indian state refiners, the Reuters report added.
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