The Indian government may soon approve 45 investment proposals of Chinese companies. These investment proposals are also likely to include Chinese major companies Great Wall Motor and SAIC Motor Corp. Sources in the government and industry said that investment proposals could get the green signal in view of easing tension between the two countries on the border.
The proposals have been pending ever since India tightened Chinese investment in retaliation against the alleged incursion of a Chinese legion into the Western Himalayan region last year. China has blamed Indian troops for the deadlock on the border. 150 investment proposals worth more than $ 2 billion were stalled from China due to escalating tensions between the two countries. This impasse also affected investment by Japanese and American companies through Hong Kong as the government was vigorously examining such investment proposals.
Union Home Ministry spokesperson approved these investment proposals
When asked about leaving, no one responded.
Two government sources looking at the list said that most of the 45 proposals set for initial approval are related to the manufacturing sector. The region is not considered more sensitive in terms of national security. Sources did not elaborate about it but two other government sources and two industry sources aware of the matter said that the list could also include proposals from Great Wall and SAIC.
Great Wall and General Motors (GM) prepared a joint proposal last year. Under this, China’s vehicle company agreed to buy the American automobile company’s car manufacturing plant in India. The size of the deal is expected to be $ 25 to 300 million. The Great Wall plans to invest $ 1 billion in India over the next few years. He had earlier stated that establishing a business in India is an important part of his global strategy. She had planned to start selling cars in India from this year and was also preparing to bring electric vehicles.
Great Wall said that it is constantly trying to get investment approval and other necessary clearances. A company spokesperson said, ‘We should be given all necessary approvals. We will carry forward our work in compliance with all the laws and regulations of the Government of India.
A GM spokesperson said, “We are constantly trying to get all necessary approvals to support this transaction.”
SAIC started selling cars in India in 2019 under its UK brand MG Motor. The company has invested around $ 400 million in the country and has committed to invest about $ 650 million. The company will need to get government approval for more investment.
The Indian unit of SAIC did not respond to an email sent for information in this regard.