Centre clarifies its Chinese FDI policy remains unchanged; dismisses Congress 'deal' claim

Discarding media reports that stated that India has given the green signal to Chinese companies to invest in India, the Government has said there is no change in the Foreign Direct Investment (FDI) policy from China post disengagement and easing of tension between the two Asian giants.

Government sources clarify

Commerce Ministry sources told news agency ANI that there is no change or easing in FDIs from China as of now and nor it is planned in near future. All investments from China have to follow the procedures and government clearance route, nod will only be given to those investments that bear no implications on Indian security interests. Any Chinese company that potentially impinges on India's security will not be cleared.

However, the government sources clarified that three proposals, which are recently cleared are based in Hong Kong and one is a Japanese origin company; they are all security cleared. They said clearance of investments had no linkage with disengagement as projected by some media reports. These proposals came up during the meeting on January 22 and were cleared by the Ministry of Commerce and Industry on February 5. Defence Minister Rajnath Singh announced the disengagement plan on February 11 in the Upper House of the Parliament.

According to Commerce Ministry sources, one company that has got the go-ahead is Nippon Paint Holdings Co. Ltd, Japan (Nippon Japan). Another FDI proposal, which is cleared is of Citizen Watches (India) Private Limited (Citizen Watches (HK) Ltd, Hong Kong (Citizen Watches Hong Kong) which is 100% held by Citizen Watches Company Limited, Japan (a company listed on the Tokyo Stock Exchange). FDI proposal of Netplay Sports Private Limited is also recently cleared, according to commerce ministry sources.

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Centre clearing China FDI plans, claims Congress

Earlier, news agency Reuters had reported, quoting government and industry sources, that 45 investment proposals from China were about to be cleared, likely including those from Great Wall Motor and SAIC Motor Corp.

On Monday, Senior Congress leader Manish Tewari had claimed that the Union government has now started clearing Beijing's Foreign Direct Investment plans despite the ongoing disengagement process in eastern Ladakh. Tewari further said that disengagement is still not over and the "red carpet" is being rolled out for the Chinese.

"Aatamnirbhar Bharat on Chinese money: Disengagement is still not over and the red carpet is being rolled out for the Chinese. The deal seems to have happened elsewhere, Timothy! After the 9-month freeze, Centre starts clearing China Foreign direct investment plans," Tewari tweeted and shared a newspaper report.

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(With agency inputs)