MHA halts clearance to 200 Chinese investment proposals

About 200 investment proposals from China are awaiting security clearance from the Ministry of Home Affairs (MHA) after new rules were notified in April, making prior government approval mandatory for Foreign Direct Investments (FDI) from countries which share a land border with India.

New Delhi:The Union Home Ministry has put a halt in giving clearance to 200 Chinese investment proposals in several strategic sectors in India.

The development took place as a fallout of the recent Galwan Valley face-off at the Line of Actual Control.

According to sources, the Home Ministry took the decision following new rules prepared by Department of Promotion of Industry and Internal Trade (DPIIT) which makes prior government approval mandatory for foreign direct investment (FDI) by the investors.

A DPIIT order issued in April said that countries which share a land border with India can invest in the country only after getting approval from the government.

It is to be noted that these proposals have been cleared without the Home Ministry's approval.

As many as 200 proposals came from Chinese investment companies since April showing their interest in India, sources said. The investment areas comprise media, telecommunications, and defence among others.

Sources, however, said that not a single proposal has been cleared by the Home Ministry, at a time when the Centre has been emphasising on the 'Make in India' initiative.