After the unprecedented ban on the Chinese apps, the government of India has taken yet another move by forbidding the Chinese companies to participate in highway projects. The Union minister, Nitin Gadkari, announced on Wednesday that India will not allow Chinese companies to invest in the highway projects.
“We will not give permission to joint ventures that have Chinese partners for road construction.” said the Mr. Gadkari. In a statement to the Press Trust of India, he further added that “we have taken a firm stand that if they (Chinese companies) come via joint venture in our country, we will not allow it”.
The Union Minister also gave an assurance by stating that the government will ensure that various sectors like Micro, Small and Medium Enterprises (MSMEs), don’t entertain Chinese investors. At the same time, he also mentioned that a policy, focusing on banning Chinese investments and relaxing norms for expanding the eligibility criterion to increase India’s participation, is under process.
This decision of banning Chinese companies’ investments in road infrastructure would be applicable on the ongoing and the future projects as well. It is important to be considered that only a few projects are in process which were taken in joint ventures with some Chinese companies earlier. The minister asserted that rebidding would be done if there are any projects in joint venture with Chinese companies.
While elucidating further on the decision, he mentioned that the norms for local companies will be relaxed enabling small scale companies to take large scale projects. He re-emphasized on the fact that foreign investment promotion is crucial to the Modi government. However, no investment propositions would be considered from any Chinese company from now.
The government has taken this move in just three days after the ‘digital surgical strike’ conducted by banning 59 Chinese apps including the widely consumed TikTok. While the ban was put to ensure data security of the Indian users, the move attracted a strong reaction from the Chinese government. The foreign ministry spokesperson told the media that the country was “strongly concerned” with India’s move and urged India to oblige with the responsibilities towards the foreign investors including Chinese companies.
