No Chinese company has been given the green signal to invest in India and no such proposal has been under consideration to be accepted as of now. India will continue to closely watch China’s next steps along the Line of Actual Control (LAC) and will not rush to lift restrictions on investments from Bejing, our reporter quoted government sources.
This comes a day after some reports were published in international media stating that India was set to clear 45 investment proposals from China, including those from Great Wall Motor and SAIC Motor Corp. However, a day later sources denied that the government has given approval to 45 Chinese FDI proposals. Sources also said that the pending Chinese FDI proposals were still under scrutiny.
Only a day ago, Reuters had quoted a government and an industry source saying, “India is set to clear 45 investment proposals from China, which are likely to include those from Great Wall Motor and SAIC Motor Corp.”
“The proposals have been held up since last year after India tightened controls on Chinese investment in the country in retaliation against Chinese troop incursions in the western Himalayan region. China blamed Indian troops for the standoff,” as per the Reuters article.
“About 150 investment proposals from China worth more than USD 2 billion were stuck in the pipeline. Companies from Japan and the US routing investment through Hong Kong were also caught in the cross-fire as an inter-ministerial panel led by the interior ministry increased scrutiny of such proposals,” it added.
The report said that most of the 45 proposals set for early approvals were in the manufacturing sector, considered non-sensitive in terms of national security. The proposals had been held up since last year after the government tightened controls on Chinese investment in the country amid border tensions, said the report.
According to sources, only three proposals of companies based in Hong Kong were cleared in a meeting held on January 22. These proposals were by Citizen watches, Nippon paints and Netplay. Of the three, two are Japanese and one belongs to an NRI, sources pointed out.
(With inputs from DNA India)
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