Applications for security clearance by Chinese companies for setting up business in India has slowed down in last two months.
This is happening despite clear indication from the government that it is ready to warm up to investments from the neighbouring country.
"We have not received any application for security clearance from Chinese companies in last two months. It's completely dried up. There is no pending application either," a Home Ministry official said.
Also Read
Interestingly, all 18 applications received from Chinese firms between June 2014 and July 2015 to set up business in India were cleared by the Home Ministry.
"It is surprising that no application from Chinese companies have come. We have done away with the old policies of being sceptical towards Chinese investment. We welcome all genuine investments from China and any other country," the official said.
Prime Minister Narendra Modi had visited China in May and business was the main focus of his three-day visit.
The 18 Chinese companies given security clearance in the last one year include for setting up project offices, branch offices or liaison offices in India in sectors like power, construction, petroleum and manufacturing.
The list also includes an airlines company and a prominent tyre manufacturer.
The most recent security clearance granted to a Chinese company by the Home Ministry was for establishing a liaison office in India by China Non-Ferrous Metal Industry's Foreign Engineering and Construction, Hong Kong.
Security clearance has also been given to an application by Shandong Tiejun Electric Power Engineering Company Ltd to set up a project office in India.
The Home Ministry had also cleared Huawei Telecommunications (India) Pvt Ltd's request seeking clearance to set up a unit for electronics or telecom hardware and support services, including trading and logistics activities, at SIPCOT Special Economic Zone at Sriperumbudur in Tamil Nadu.
All applications from Chinese firms are routed through respective Ministries such as Power, Finance or Commerce and Industries.
