Dubai Ports World, Chinese companies, China’s new forex reserve fund, Saudi Telecom and even Vodafone have been cited as areas of “potential threat to national security,” in a confidential note prepared by the Government’s Joint Intelligence Committee.That note, available with The Indian Express, raises a slew of red flags on FDI, calls for more stringent security checks on it and lists several cases of investments, mergers and acquisitions calling them “potentially inimical” to national security. These guidelines are an update of the JIC’s earlier paper (August 28) and were circulated at a meeting of the Committee of Secretaries held yesterday.Consider the examples cited in the JIC note as reasons for caution:• Chinese Sovereign Wealth Fund has acquired stakes in the US private equity group Blackstone which is fast emerging as a “major equity player in the Indian market and looking to invest in sensitive defence-related industries.”• Chinese company Huawei, founded by a former Army officer and current member of the Chinese Communist Party has “R&D operations in Bangalore and wants to expand its operations in India. Its “expanded footprint is not in our national security interest,” says the note. • Dubai Ports World (DPW) connected with container terminals at Chennai, Vizag and Mundra, has won major contracts from the Pak Government to operate the Gwadar Deep-Sea Port built by China Harbour Engineering Corporation. “Hence, presence of DPW in our ports is not in our national security interest and it could engage in direct and real-time collection and disseminatioan of intelligence. the possibility of sensitive information being passed on to Pak intelligence agencies cannot be ruled out.” • Royal Airways, the owner of “Spice Jet” has “indulged in stock market manipulations,” claims the JIC note. When contacted, Spicejet officials told The Indian Express that Royal Airways is no longer the owner and they have never received any notice or questions on ownership or market manipulation. • China’s state-owned China Great Wall Industry Corporation (CGWIC) holds majority stake in the “Great Wall Airlines” which has “plans to apply for cargo operations in Chennai and Mumbai.” But the CGWIC has very close links with the PLA and the US Government since 1991 has imposed sanctions on it for missile proliferation. “The Chinese take keen interest in monitoring our nuclear establishments and missile and satellite launch facilities and thus, the presence of the Great Wall Airlines is not desirable.”• Vodafone’s merger with Hutchinson Essar Ltd: “While applying for FIPB approval, Vodafone was required to make disclosures regarding business operations, joint ventures etc. However, it misrepresented facts before FIPB and failed to complete information about its partners,” says the note adding that “telecom is a sensitive sector.” When contacted, a Vodafone spokesman said its acquisition case was fully cleared by the FIPB and it strongly objects to such allegations.• Saudi Telecom’s acquisition of Maxis: The company recently acquired 25% stake in Maxis Communications, which, in turn, owns 74% operational stake in India through its Chennai-based Aircel unit. “Aircel operates in several sensitive locations (Assam, North-east, Jammu and Kashmir) and has applied for a pan-Indian licence. By obtaining a majority stake, Saudi Telecom would indirectly obtain controlling rights over Aircel operations,” the JIC says.
