New Delhi, May 14: The government plans to conduct more stringent reviews of some major investment proposals from Chinese companies to invest in India, which could delay the go-ahead for these ventures, according to an NDTV Profit report.
The decision comes in the backdrop of China’s support to Pakistan in the wake of the terrorist killings in Pahalgam and ‘Operation Sindoor’ that followed. China has been extending diplomatic support to Pakistan, in coordination with Turkey and Bangladesh, apart from providing military hardware that has been used against India.
The government is expected to intensify its scrutiny of Foreign Direct Investment (FDI) proposals and joint ventures backed by Chinese firms. Several new joint ventures may be proposed as a workaround to existing restrictions, but pending proposals and ongoing negotiations could also face delays, the NDTV Profit report said citing people familiar with the matter.
Some Indian companies are in talks with Chinese firms for joint ventures in the electronics component manufacturing segment under the government’s Production-Linked Incentive (PLI) scheme. These projects are likely to be delayed.
Among the major Chinese companies, home appliances giant Haier is exploring a joint venture (JV) with the JSW Group, an Indian conglomerate, for a potential investment of Rs 1,000 crore. The proposal is under the consideration of the government.
At the UN Security Council committee #1267 on counter-terrorism, China blocked any mention of The Resistance Force, an arm of the Lashkar-e-Tayiba terror group, that initially took responsibility for the Pahalgam attacks on April 22. China’s Foreign Minister Wang Yi had sought an ‘investigation’ into the attacks as part of Pakistan’s damage-control move to whitewash its role in cross-border terrorism.
India had previously imposed curbs on FDI from China in April 2020 and subjected these proposals to a government scrutiny on a case-by-case basis before approval. Companies such as Chinese telecom equipment manufacturers Huawei and ZTE were excluded from the 5G rollout in the Indian telecom sector on grounds of national security. India telcos were advised by the government to go only for “trusted source” equipment for the expansion of their networks.
IANS
