Montek plays down security concerns from Chinese investments

Montek welcomes investment in infrastructure deals worth over $5 billion signed at the 2nd India-China Strategic Economic Dialogue

Deputy Chairman Planning Commission Montek Singh Ahluwalia today played down the security issues associated with the supply of equipment from Chinese telecom companies and invited Chinese investment in the infrastructure sector. Ahluwalia was speaking to the media after addressing the second India-China Strategic Economic Dialogue.

When asked about security issues pertaining to the Chinese investment in India, Ahluwalia said that invariably there were certain areas of concern but this was not a general issue. “We are doing what is necessary from the security point of view, but this doesn’t come specifically in the India-China context,” he said, adding that the issue was not raised at the dialogue.

High-speed rail corridors is one area where Indian government has asked for co-operation from China.

“We are very interested in Chinese investment in infrastructure,” said Ahluwalia.

Seven Indian companies signed agreements of over $5 billion with their Chinese counterparts for investments in India at the event.

Reliance Energy signed a $3-billion agreement with Guangdong Mingyang Wind Power Industry Group for a 2,500-MW renewable energy project with project financing from the CDB and Lanco Group entered into a $600-million financing deal with Chinese Development Bank (CDB) for the Anpara Phase-II power project.

Other deals included the $800-million agreement between NIIT and Hainan province for setting up an IT knowledge park and a $384-million joint venture between Ramky Enviro Engineers Ltd and Sanfeng Environmental Industrial Group Company Ltd. to set up ‘waste to energy’ projects on build, operate, transfer basis in Delhi, Mumbai, Hyderabad and Chennai.

The other three agreements are the $300-million EPC (engineering, procurement, and construction) contract for the phase-II plant of Uttam Galva Steels Ltd to be executed by China Metallurgical Group Corporation, the $98-million deal between Lanco Enterprise and Zhejiang Feida Environmental S&T Company for the Amarkantak power project, and the $20-million investment project by Zhongtian S&T Ltd to manufacture electric conductors and transmission lines at Sri City in Andhra Pradesh.

Four memorandums of understanding were also signed between the associated agencies of the two countries for undertaking joint studies, enhancing co-operation in energy efficiency, technical co-operation in railways and in the IT sector.

Ahluwalia said at the meeting that Chinese firms had significant market shares in India in areas ranging from electronic hardware and white goods to construction machinery and power transmission, over and above their impressive performance in power generation and telecommunications.