54 FDI proposals with investor/beneficial owner from China, Hong Kong pending for decision

Finance minister Nirmala Sitharaman on Monday informed the Lok Sabha that 54 FDI proposals with investor/beneficial owner from China and Hong Kong are pending for decision with the government.

In April 2020, the government had amended the FDI policy in order to curb opportunistic takeovers/acquisitions of Indian companies due to the COVID-19 pandemic.

As per the amended policy, an entity of a country, which shares land border with India or where the beneficial owner of an investment into India is situated in or is a citizen of any such country, can invest only under the government route.

“54 FDI proposals received during the past year and current year with investor/ beneficial owner from China/Hong Kong are pending for decision with government as on March 21, 2023,” Sitharaman said in a written reply.

Any transfer of ownership of any existing or future FDI in an entity in India resulting in the beneficial ownership falling within such jurisdiction (s) will also require government approval.

The minister also said there was no proposal under consideration to ease restrictions on foreign investments from the companies that are based in countries that share land border with India or have an investor from these nations.

Replying to another question, the finance ministry said the number of counterfeit banknotes detected in banking channel has come down from 7.62 lakhs pieces in 2016-17 to 2.09 lakhs pieces in 2020-21 post decision of the government of India to withdraw the legal tender character of Rs 1,000 and Rs 500 denomination currency notes in November 2016. PTI NKD CS HVA