Our Bureau
New Delhi
There might be some good news for the domestic firms that work in the strategic sectors like electronics, renewable energy, and infrastructure. Reports have come out that suggest that the Indian government might be looking to approve the joint venture of Chinese partners and the domestic Indian firms in these strategic sectors.
As per the reports, there are roughly six to seven joint ventures of domestic firms and Chinese partners that have been sent forward to advanced stages of review. The companies that are seeking approval from the central government include the likes of Dixon Technologies, Bhagwati (Micromax), and Karbonn.
The decision to approve these joint ventures comes in light as the government is trying to assess the projects that could boost the manufacturing in the country under the new component manufacturing scheme. However, the government officials have laid emphasis on the fact that only those proposals will be considered for approval that involve real technology transfers, beyond simple assembly.
It is being reported that the authorities will only approve those ventures in which the Indian companies will retain control. Also, the government will also need full surety that there will be no risk of data leaks and national security.
These moves by the government come as there is a heavy discussion going around the policies, following the proposals of NITI Aayog. The proposal will allow Chinese firms to only hold up to 24% in Indian entities without harming the security checks. As per the current settings, all the foreign investments made directly by the Chinese firms must first be cleared by the Indian government as per the Press Note 3 rules.
