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Policy & Regulation
FIPB to discuss Chinese firms’ investment proposals
TT Correspondent |  |  20 Nov 2012

The investment proposals of the two Chinese firms-Huawei and ZTE- are likely to be discussed when the officials of Foreign Investment Promotion Board (FIPB) meet on Tuesday. The meeting has assumed significance as a recent US Congress Report suggested that these companies posed a security threat.

The Department of Telecommunications and the Department of Science and Technology will take into consideration the potential risks after the FIPB report is submitted to them. Thereafter, the measures to deal with these firms will be taken.

Economic Affairs Secretary Arvind Mayaram will chair the meeting. Telecom Secretary R Chandrashekhar and secretaries of the ministries concerned will also participate in the meeting.

Huawei and ZTE supply equipment to their Indian companies and have been cause of concern for India security agencies and the government.

FIPB had deferred the applications of the two Chinese vendors in 2002, 2005 and 2006, but these companies continued to operate in India 'as their activities falls under the automatic route', according to as Arvind Mayaram quoted by Economic Times.

    
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20 Nov 2012(IST)  
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