India has no plans to put any barrier on Chinese investment in the country by going slow on security clearance given to companies from that nation, notwithstanding the ongoing Sino-Indian border row. A Home Ministry spokesperson said the issue of putting on hold security clearance given to Chinese investment was “not under any consideration”. “It is not under any consideration. Such issues are dealt with great deal of maturity by the concerned agencies at the appropriate level,” he said.
The spokesperson was replying to a question on whether the government was mulling going slow in giving security clearance to Chinese companies intending to investment in India in the wake of border stand off near Sikkim. The home ministry is the nodal authority to provide security clearance to foreign investment under the National Security Clearance Policy. A total of 14-15 parameters are fixed in eight to nine sensitive areas like telecom, ports and civil aviation etc. The home ministry has also spelt out locations where foreign investment is not welcome such as those close to the border and vital installations.
According to the data provided by the Ministry of Commerce and Industry, China has invested USD 1.64 billion (Rs 10,094 crore) during April 2000 and March 2017. Chinese companies have invested mostly in telecom, power, engineering and infrastructure sectors. Several Chinese companies have also shown interests to set up industrial parks in the country.
The standoff between troops of India and China at Dokalam area started after Bhutan, which has close diplomatic and military ties with India, protested to Beijing about the People’s Liberation Army troops building a road in the strategic location close to chicken neck tri-junction. Doka La is the Indian name for the region which Bhutan recognises as Dokalam, while China claims it as part of its Donglang region.
China and Bhutan are engaged in talks over the resolution of the area. Bhutan, however, has no diplomatic ties with China and it is supported militarily and diplomatically by India. Of the 3,488-km-long India-China border from Jammu and Kashmir to Arunachal Pradesh, a 220-km section falls in Sikkim.