BLS International Hit with Two-Year MEA Tender Ban: Impact on Visa and Passport Services Explained
The Ministry of External Affairs (MEA) issued a two-year ban on BLS International Services Ltd, prohibiting the company from participating in future tenders related to Indian Missions and Posts abroad. This decision, announced on a recent Friday, affects BLS’s ability to bid for new projects with Indian embassies, consulates, and diplomatic offices globally. The company attributed this measure to ongoing court cases and applicant complaints but did not provide further detailed explanations.
Impact on BLS International
Following the MEA’s announcement, BLS International experienced a significant decline in its stock market value. On the following Monday, shares fell by as much as 11%, settling at Rs 299 by 1:20 PM. This drop highlights investor concerns regarding the restriction’s potential impact on BLS’s future business prospects.
Ongoing Contracts Remain Intact
Importantly, the MEA order does not affect existing contracts. BLS International confirmed that its current agreements with Indian Missions will continue, ensuring uninterrupted visa, passport, and biometric services for Indian citizens abroad. The ministry’s ban solely pertains to future tenders.
- 12% of BLS’s consolidated revenue in Q1 FY26 derived from Indian Missions.
Company’s Response and Financial Performance
BLS International stated it is reviewing the MEA’s order and might pursue legal action if deemed necessary. The company characterized the ban as a procedural issue within the visa outsourcing industry. Despite this setback, BLS reported a remarkable 44% year-on-year revenue growth in Q1 FY26.
Additionally, the company secured a substantial ₹2,055 crore contract from the Unique Identification Authority of India (UIDAI) to manage Aadhaar Seva Kendras, enhancing its domestic portfolio.
Services for Non-Resident Indians
BLS has reassured Non-Resident Indians (NRIs) that services will continue as usual. Passport renewals, visa processing, and document attestation can still be conducted through existing BLS centres without disruption. Although new contracts arising during the ban may be awarded to other vendors, current operations will remain unaffected.
Future Implications for BLS International
The MEA’s decision poses a reputational risk for BLS International. Analysts predict that confidence in future bids, both for government and international contracts, may be impacted. Although the ministry has not released specific reasons for the order, complaints and ongoing legal matters concerning service delivery are believed to be contributing factors.
Nevertheless, experts maintain that BLS’s diversified international operations will help mitigate potential financial repercussions. The company operates across more than 60 countries, providing a range of services including visa processing and biometric data collection.
Global Expansion Strategy
BLS International is actively pursuing a strategy to enhance its global presence. It holds contracts in various countries, including the United States, UAE, and several European nations. The recent acquisitions of iDATA and Citizenship Invest further solidify its position in the citizenship and residency sector.
Despite the two-year ban from bidding on new tenders with Indian Missions, BLS International aims to maintain its service quality and effectively manage regulatory challenges. By continuing to expand its international portfolio, the company seeks to ensure long-term revenue stability and minimize its reliance on domestic contracts.
