India cleared 3 proposals from Hong Kong on February 5; investment scrutiny remains

Written By: Sidhant Sibal WION
New Delhi Published: Feb 22, 2021, 04.51 PM(IST)

India China ties Photograph:( Reuters )

Story highlights

The three proposals include two from Japanese companies and one from NRI investors, not something that is 'hardcore' proposals from mainland China. WION has seen the proposals, one of them is about restructuring of a company

Indian government has cleared three proposals from Hong Kong on February 5, much before the beginning of first phase of disengagement at the Pangong lake. The inter-ministerial committee (IMC) led by the home ministry cleared the proposal on January 22.  

After the Galwan incident last year, India increased scrutiny on the Chinese investment into the country. WION has learnt the policy remains intact. India lost 20 of its soldiers during the aggressive actions of the Chinese PLA. China has accepted the loss of four of its soldiers.  

The three proposals include two from Japanese companies and one from NRI investors, not something that is 'hardcore' proposals from mainland China. WION has seen the proposals, one of them is about restructuring of a company.  

The Japanese proposal is an FDI proposal of Nippon Paint (India) private limited. The transaction involves, increase in shareholding into three Indian entities. Second proposal is of Citizen Watches company, listed in the Japanese stock exchange as Citizen Watches India and the third by an NRIs based in Hong Kong into a sports company based in Hyderabad. 

Earlier this month, on February 11, Indian Defence minister Rajnath Singh announced the details of the first phase of disengagement at Pangong Lake. Under the plan, Chinese forces will go east of finger 8 on the north bank of the lake. The disengagement got over last week and on Saturday, the 10th round of talks concluded between the Indian and Chinese sides. The talks focused on disengagement in other areas, like Gogra, Hot Springs, and Depsang planes. 

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