Energy Efficiency Services (EESL), the government’s electric vehicles procurement arm, has said that MG Motor, a subsidiary of China’s Shanghai Automotive (SAIC), will stand disqualified for their upcoming e-vehicles tender in the absence of an official clearance by a panel comprising officials from the department for promotion of industry and internal trade (DPIIT), and home and external affairs ministries.

EESL MD Saurabh Kumar said the company has floated a new tender for 250 electric cars, and the Chinese company, which sells ‘ZS’ e-vehicle, has to fulfil the criteria to participate. The tender closes on Friday.

“There is a specific requirement recently spelt out by the government that any company which has an ownership from China has to follow a registration process. They need a clearance from the DPIIT. This is part of the tender process,” Kumar said in an interview. “If they don’t have it, they will stand disqualified, simple.” EESL’s condition comes as the government has stipulated strict conditions for investment and tender participation from Chinese companies over the past few months after the escalation of tensions between the two countries.

As the diplomatic relations worsened, the Maharashtra government had in late June put on hold investment proposals worth Rs 5,000 crore by Chinese companies, including by carmaker Great Wall Motor.

Before tensions at the border escalated, EESL had bought a few units of the MG ZS SUV as part of the company’s policy to test new e-vehicles that are introduced into the market, Kumar said.