Economy> Foreign Trade
Centre okays core Chinese cos' plans to invest here
RADHIKA BHALLA
TIMES NEWS NETWORK
WEDNESDAY, DECEMBER 21, 2005
NEW DELHI: Foreign investment from China in critical infrastructure sectors will no longer be stonewalled on grounds of "national security."
For the first time, the prime minister's office has directly intervened to allow reputed Chinese infrastructure companies to set shop in India. It is now being recognised by policymakers that Chinese companies are very competitive and will help bring down infrastructure sector costs.
To start with, three leading Chinese companies - Evergreen Marine, Hutchison Port Holdings and Hua Wei - are likely to take up infrastructure projects in India. The world's leading port developer Hutchison Port Holdings and Evergreen Marine have been given the go-ahead to bid for container and offshore terminals in Chennai and Mumbai.
Hutchison of Hong Kong and Evergreen of Taiwan are the only two global shipping players that were not being able to invest in India for want of security clearance.
The proposed investment of Rs 1,165 crore in offshore terminals in Mumbai is one of the largest investments in the port sector. In Chennai, the second container terminal is being privatised and will require an investment of around Rs 492 crore. According to officials in the shipping ministry, Hutchison is likely to bid in a consortium with construction major, Larsen and Toubro (L&T), while Evergreen is most likely bid alone. In the former case, Hutchison will be the management contractor to undertake the development of the port, while L&T will provide the finances.
The Hong Kong-based company had expressed interest in bidding for the third terminal of JNP in '03. However, its application was rejected as it was denied security clearance. Recently, the company showed interest in developing the proposed offshore container terminal at Mumbai port. The Mumbai Port Trust wants to develop the terminal under a joint venture. As of now, there are nearly 11 bidders in the fray for the two offshore terminals at Mumbai port.
Earlier Hua Wei Telecom, a global equipment supplier with presence in over 30 countries, had been described as a security risk by the home ministry. Later, the cabinet secretary had noted that India needed the presence of companies like Hua Wei to drive down the cost of telecom equipment in India. This view was also endorsed by the department of telecommunications.
Copyright © 2005 Times Internet Limited.