Metal, power producers seek streamlined visa regime for Chinese experts

Domestic metal and power producers argue that many project-critical activities face setback due to visa approval delays faced by foreign experts, especially Chinese OEMs, contractors, and engineers

Local metal and power producers are urging the Indian government to implement a streamlined visa regime for foreign experts, including those from China, akin to the system available to companies under the production-linked incentive (PLI) schemes. These producers have highlighted significant project execution delays due to the slow processing of visas for foreign specialists, according to a report by The Economic Times.

The producers have proposed creating a special cell and a mechanism to ensure the timely issuance of visas for foreign experts, officials, and engineers from overseas original equipment suppliers (OEMs).

Project execution delayed over visa permits

The delays in obtaining visas for foreign experts have become a substantial bottleneck for many industries, particularly as signs of increased private capital formation emerge. The manufacturers have raised these concerns with their respective administrative ministries, seeking a more efficient visa process to mitigate foreign manpower issues, similar to the provisions for PLI beneficiaries.

Power producers argue that many project-critical activities, including power plant commissioning, flue gas desulfurisation installation, and capital overhauls, are being delayed due to visa approval delays especially for Chinese OEMs, contractors, and engineers.

While metal producers complained that many expansion projects in the aluminium industry, valued at over $2 billion, are stalled due to the need for highly technical experts from China. These experts possess specialised expertise for patented technology, which is not available locally.

The renewable energy sector, heavily reliant on equipment from China, is also experiencing similar challenges.

Government response to work visa delays

In April 2020, the Centre mandated prior government approval for foreign direct investment (FDI) from countries sharing a land border with India, regardless of sectoral caps, to prevent opportunistic takeovers. Following this, the government also imposed restrictions on certain Chinese apps and required prior security clearance for government supply contracts. As border tensions escalated, obtaining visas for Chinese personnel became increasingly difficult due to security concerns.

However, last week officials said that a better standard operating procedure (SOP) to streamline visa approvals was in the process for Chinese professionals whose expertise is required by vendors under the PLI scheme. This came in response to domestic manufacturing firms flagging visa delays for Chinese technicians. The officials stated that the SOPs do not require any approval from the Union Cabinet.

Now, metal and power producers are requesting the same, stating that consistent visa policies are needed across all core sectors to prevent project delays and ensure smooth operations. As the government moves towards a streamlined visa regime, the hopes of local metal and power producers hinge on swift implementation to mitigate ongoing challenges.