45 Chinese Investment Proposals To Be Cleared By Govt
Great Wall and SAIC are likely to be included among the proposals set for early approval.
The Indian government is set to clear 45 Chinese investment proposals, likely including that of Great Wall and SAIC Motor, due to easing military tensions between the 2 nations.
They are among about 150 Chinese investment proposals worth more than $2 billion (around Rs. 14,470 crores) that are stuck in the pipeline for a year, as after the standoff between Indian and Chinese troops in the Western Himalayan region, India increased scrutiny of such proposals.
Even firms from Japan and the USA which routed investment through Hong Kong were affected due to the government’s decision. But, as the embroiling situation eases, the Indian government’s stance has changed.
Thus, the government plans to split up the Chinese investment proposals into categories such as sensitive (data and finance) and non-sensitive (automobiles, chemicals and textiles) in terms of national security.
Most of the 45 proposals set for early approval are deemed non-sensitive and it is likely that Great Wall Motor and SAIC Motor Corporation are on it.
Last year, Great Wall and General Motors made a joint proposal seeking the government’s consent for the Chinese brand to purchase the US firm’s Talegaon plant in order for Great Wall to begin its Indian operations.
The Chinese firm plans to invest $1 billion (Rs. 7242 crores) here in the short term and also plans to bring in electric vehicles as well.
SAIC, on the other hand already sells cars in India under MG Motor and has been awaiting approval to bring further investment to the nation as part of its $650 million (Rs. 4700 crores) commitment, of which it has pumped in $400 million (around Rs. 2900 crores) already.
Source – Reuters.com