New Delhi: India will not permit the Chinese companies to take part in highway projects, including those via joint ventures, Union Minister Nitin Gadkari said today amid the clash with China at the Line of Actual Control in Ladakh.
Mr. Gadakri also said the government will guarantee that the Chinese investors are not invited in various sectors like Micro, Small, and Medium Enterprises (MSMEs).
Amid escalating tensions, the government on Monday banned 59 apps, mostly having Chinese links, citing threats to national security.
“We will not permit joint ventures that have Chinese partners for road construction. We have taken a firm stand that if they (Chinese companies) come via joint venture in our country, we will not permit it,” Mr. Gadkari told news agency Press Trust of India in an interview.
Currently, only a few projects which were undertaken much earlier involve some Chinese partners. When asked about this, the minister said that the new decision will be implemented in current and future tenders.
Concerning existing tenders and future bids, Mr. Gadkari said rebidding would be done if there are any Chinese joint ventures.
According to him, qualification norms for projects are being rationalized to ensure Indian companies do not require to enter into pacts with foreign partners to grab projects.
About the MSME sector, Mr. Gadkari said the effort is to enhance the capacity of local production but at the same time foreign investment is being promoted.
However, he made it clear that despite the decision to encourage foreign investment, Chinese investors would not be allowed.
“For up-gradation of technology, research, consultancy, and other works, we will encourage foreign investment and joint ventures in MSMEs but in case of Chinese we will not entertain them,” he said.
“It is a good step. The imports from China will be discouraged and the country will take large strides towards self-reliance,” the minister said and added that he is among the strongest proponents of “Atmanirbhar Bharat”.
There are reports that customs authorities at Chennai and Vishakhapatnam ports are conducting extra scrutiny of consignments from China.
Mr. Gadkari, as per the information, did not mention the name of the country from where these equipments were imported.
“Indian business has the strength and skills to grow further and power our journey towards self-reliance. Under the strong leadership of PM Narendra Modi, the Government of India is proactive and initiating path-breaking reforms that will help businesses and MSMEs,” he said.
Most of these equipments, as per the information, pertain to spraying devices for pesticide control as the same had been diverted to urban areas during the COVID-19 pandemic outbreak.
Amid heightened border tensions with China, Indian customs officials have started physical inspection of all consignments coming from the neighboring country especially Chennai and Vishakhapatnam ports.
The Indian Railways’ Dedicated Freight Corridor Corporation of India Limited (DFCCIL) has decided to terminate a contract with China. The signaling contract was given to Beijing National Railway Research & Design Institute of Signal & Communication in the year 2016.
The Chinese company was meant to complete the signaling and telecommunication work the 417-km long Kanpur-Deen Dayal Upadhyay section. The project cost was Rs 471 crore.
The decision was taken because the Chinese firm had only completed 20 percent of the work in four years.
Officials said the Chinese company was reluctant to furnish technical documents as per contract agreement. Also, the Chinese firm has not been able to provide engineers/authorized personnel at the site which was a serious constraint.