The central government has again asked the Tamil Nadu government to refrain from finalising the BharatNet tender worth Rs 20 billion until a grievance filed by a USA-based company is resolved.

The USA-based company had alleged non-compliance of public procurement preference to Make in India, Order, 2017.

In addition, the union ministry of commerce and industry has also asked the state government agency TANFINET to take disciplinary action against erring officials where restrictive conditions against domestic manufacturers have been imposed in a malafide fashion. It has also sought a report on the issue and said that the subject procurement will not be finalised till the aforesaid grievance is disposed of by the competent authority.

This is the second time the tender has faced such an issue after a similar letter was sent to Tamil Nadu government in April 2020 on the basis of a complaint by Chennai- based anti-corruption NGO alleging restrictive tender conditions.