Niti backs easing security scrutiny of Chinese investments

THE NITI AAYOG has proposed easing rules that de facto require extra scrutiny for investments by Chinese companies, arguing that the rules have meant delays for some sizeable deals, three government sources said.

- SARITA CHAGANTI SINGH & NIKUNJ OHRI

Currently, all investments by Chinese entities in Indian companies need to gain a security clearance from the ministries of home affairs and external affairs. The government think tank has proposed that Chinese companies can take a stake of up to 24% in an Indian firm without any approval being required, said the sources who were not authorised to speak to media and declined to be identified.