Recent Amendment in DPIIT Approval Process

In this Article, I would like to discuss about the recent amendment in DPIIT Approval process. Government of India has issued an Order in February, 2023 and that is the basis of changes in the process through DPIIT order dated 28th April, 2023. Following are the summary of changes in DPIIT Application process by a bidder from land bordering countries including from China.

1)???? Under Appendix A, column 8: Name of the TOT entity is asked for the first time.

2)???? ?Appendix C:? Changes of TOT are:

a)???? Copy of Agreement with TOT entity to be attached

b)???? Financial details of TOT entity including net worth certificate from CA

c)???? Beneficial ownership details of TOT Entity to be certified by CA

3)???? Appendix-F: The whole Appendix F is about the directors, management, and beneficial ownership (10%) and their security clearance

4)???? Appendix-G: Whole new appendix. Bidders with TOT arrangement for sensitive sectors and sensitive technology must give details in which sectors the bidder is seeking registration.

5)???? ?Beneficial ownership is defined as 25% controlling ownership interests. This is different as 10% beneficial ownership for TOT entities

6)???? Government e-Marketplace (GEM) portal will remove non-compliant entities.

7)???? On submission of application, the Competent Authority will first seek political and security clearance from Ministry of External Affairs and Ministry of Home Affairs.

8)???? In case of state government, the respective competent authority is authorised to evaluate/grant application, after the political and security clearance from the Government of India.

9)???? Procurement of essential spare parts from Original Equipment Manufacturers will be exempt from the DPIIT registration.

In case you have any concern and queries or need any support ?in DPIIT Approval, you may contact us.

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Abhinarayan Mishra, FCA, FCS

9910744992, [email protected]