India To Ok 45 Investments in China like Great Wall Motors: Study on India to Ok 45 China

India is expected to clear up 45 investment proposals from China, which are likely to include those from Great Wall Motor and SAIC Motor Corp, as military tensions ease at the border, government and industry sources told Reuters.

Since last year, the proposals have been kept up after India tightened its controls on Chinese investment in the country in retaliation against Chinese troops invading the western Himalayan region. China blamed the standoff on Indian forces.

Around 150 investment plans worth more than $2 billion from China have been stuck in the pipeline. As an inter-ministerial panel headed by the Interior Ministry increased scrutiny of such plans, companies from Japan and the US routing investment through Hong Kong have also been caught in the cross-fire.



A spokesman for the Home Ministry did not respond to a request for comment on the proposals to be explained.

Two government sources who saw the list said that most of the 45 early approval proposals were in the manufacturing sector, which is considered to be non-sensitive in terms of national safety.

The sources did not elaborate, but the proposals from the Great Wall and SAIC are likely to be on the list of two other government officials and two industry sources who are privy to the process.

In a transaction estimated to be priced at about $250-$300 million, Great Wall and General Motors (GM) made a joint proposal last year requesting permission for the Chinese automaker to purchase the US company's car plant in India.

"If all relevant approvals are granted, we will push all work forward in India, complying with the laws and rules laid down by the Indian government," said a company spokesman.

"We continue to seek all relevant approvals to support the transaction."In support of the transaction, we continue to seek all relevant approvals.

SAIC, which began selling cars under its British brand MG Motor in India in 2019, has spent approximately $400 million of the nearly $650 million it has committed to India and will require permission to bring further investment.

The Great Wall, which plans to invest $1 billion in India over the next few years, said earlier that a core part of its global strategy is to set up operations in the region. As of this year, it had decided to start selling cars in India and was also looking to put electric vehicles in.

"If all relevant approvals are granted, we will push all work forward in India, complying with the laws and rules laid down by the Indian government," said a company spokesman.

"We continue to seek all relevant approvals to support the transaction."In support of the transaction, we continue to seek all relevant approvals.

SAIC, which began selling cars under its British brand MG Motor in India in 2019, has spent approximately $400 million of the nearly $650 million it has committed to India and will require permission to bring further investment.

The India unit of SAIC did not respond to an email seeking comment.

The change in the attitude of the government follows an improvement in the situation at the border. Troops that were in the eyeball to eyeball confrontation were withdrawn, declared on Sunday by the two countries.

Sectors such as cars, electronics, chemicals, and textiles are seen as non-sensitive, while consultants and lawyers have said that those involving data and finance are considered sensitive.

One of the government sources said that plans from non-sensitive sectors would be accepted more quickly, while those seen as "sensitive" would be reviewed later.

The aim is to break over 150 planned Chinese investments into three groups, the sources said, depending on the risk to national security.


Additional Source: India To Ok 45 China Investments Including Great Wall Motors: Report

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