In new FDI policy, Chinese firms to lose licence if found spying

A condition will be inserted to ensure that Chinese companies do not set up factories near the border areas or near sensitive installations.

Written by Vijaita Singh | New Delhi | Published:May 22, 2015 12:21 am
narendra modi, modi in china, modi china visit, china, china modi, pm modi in china, President Xi Jinping, modi in china, narendra modi in china, modi china tour, new delhi, IE column During PM Modi’s China visit, two states—Maharashtra and Gujarat—were chosen for industrial parks to be set up.

The Centre has given final shape to its new FDI policy to promote investments from China, which will have provisions to immediately cancel the contract of a company if found indulging in anti-national activities or spying.

The government also plans to set up state-of-the-art testing facilities and will insert a clause that would make it mandatory for the company to hire more Indian employees. The policy will also have provisions for post-investment monitoring.

A condition will be inserted to ensure that Chinese companies do not set up factories near the border areas or near sensitive installations.

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The National Security Council Secretariat (NSCS) had invited all stakeholders to review the policy in respect of security clearance norms for Chinese FDI.

During his visit to China last week, Prime Minister Narendra Modi invited Chinese investments, especially in the fields of infrastructure, manufacturing and telecommunications, among others.

As part of the “Make In India” policy, a decision has been taken to liberalise provisions for Chinese investment.

The intelligence agencies, meanwhile, expressed their apprehensions about the presence of Chinese companies here, but the government decided to go ahead with its policy.

“It is unlikely that India will go to war with China in the next 10 years. Such kind of vague apprehensions about China need to be addressed and in order to ease business, steps are being taken to address vulnerabilities,” said a Home Ministry official. The government is also planning to set a time limit of 60 days for all the security clearances.

“It is not as if Chinese companies are not sending their products to India, it is all coming through the import route. If investments have to be promoted, then security clearances need to be eased,” said the official.

“The post-investment monitoring will ensure that national security is not compromised,” said the official.

During PM Modi’s visit, two states—Maharashtra and Gujarat—were chosen for industrial parks to be set up.

“Over the last few days, we deliberated with all the concerned agencies like IB, R&AW and tried to address their apprehensions. The government is not in a mood to stall Chinese investments,” said the official.

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  1. A
    ah
    May 22, 2015 at 11:39 am
    In new FDI policy, Chinese firms to lose licence if found spying - Meanwhile USA will monitor the most strategic et, namely Indian Nukes at the INVITATION of Modi. This govt. itself is state enemy, by their Defence Deals and Nuclear Supervision Agreement. Iran and NK has more sense than to trust NATO. Modi is a fan of EVERYTHING with pale skin. Same goes for Chaddis. Now they are having CLOSED doors discussion with Pale Skins ....... LOL
    Reply
  2. V
    vns
    Jun 25, 2015 at 11:36 am
    who else is going to invest in indian economy? you probably are a corrupt govt official siphoning crores of tax payers as gold and real estate...or you are part of disgraced congress supporters who have ruined the country through their divisive ideologies and their cult worship of the treacherous Nehru family..
    Reply