Govt has received 120-130 FDI proposals from China since April: Report
- IBEF
- December 23, 2020
Since April 2020, when it was mandated for a company from countries sharing the land border with India to invest in any sector only after obtaining government approval, the government has received over 120 foreign direct investment (FDI) proposals worth around Rs. 12,000 crore (US$ 1.62 billion) from China.
As per mandate, China's FDI proposals require government approval for investments in any sector in India.
The government has established an inter-ministerial committee to assess these plans, adding that most of the investments are for brownfield projects (means in existing Indian companies).
The Department for the Promotion of Industry and Internal Trade (DPIIT) issued a press release in April 2020 stating that only after obtaining government approval can a company or an entity from a country that shares land borders with India invest in any industry.
Because of the ongoing COVID-19 pandemic, the decision was taken to prevent opportunistic takeovers or acquisitions of domestic enterprises.
They added, “We have received 120-130 FDI proposals from China, worth about Rs. 12,000 crore (US$ 1.62 billion) - Rs. 13,000 crore (US$ 1.76 billion).”
Between April 2000 and September 2020, India received FDI inflows from China worth US$ 2.43 billion (Rs 15,526 crore).
Other reports have suggested that some Chinese companies have applied for registration in government contracts for bidding and that those applications have been forwarded to the home ministry.
Chinese companies do not have any limitations on bidding on projects sponsored by multilateral organisations, they said.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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