India is yet to take a call on FDI proposals from China which are pending with different government agencies, sources told CNBC-TV18. But the country won’t restrict Chinese companies bidding for projects that are funded by multilateral institutions like the World Bank or ADB.
According to the sources, as many as 120-130 FDI proposals from China are currently with the government, totalling around Rs 12,000-13,000 crore.
In April this year, India put restrictions on inbound FDI from China by mandating that all foreign investment proposals from nations that share a land border with India will need to get a nod from the government.
An inter-ministerial panel that was set up to vet the FDI proposals is yet to take a call on the FDI proposals from China.
The sources also told CNBC-TV18 that several Chinese companies have applied for registration with the government to bid for government contracts. India has made it mandatory for foreign companies belonging to nations that share a land border with India to register before being allowed to bid for government projects.
But government officials clarified that companies wanting to bid for public projects in India that have multilateral funding from agencies like the World Bank or Asian Development Bank need not register with the Indian government.
India shares a 3,488-km border with China. Both the countries undertook massive deployment of defence forces along their northern borders, amidst the worst skirmish seen in 40 years that led to casualties on both sides in the month of June.
First Published: Dec 22, 2020 2:24 PM IST
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