Reliance Energy, Lanco and NIIT along with three other Indian companies have joined hands with Chinese companies, banks and financial institutions for investment and project financing of over $6.6 billion.
The six companies signed agreements with Chinese institutions during the second meeting of the India-China Strategic Economic Dialogue here on Monday. It is believed that funds from China are slightly cheaper than from India institutions. Secondly, Chinese banks and financial institutions support Chinese companies for project exports. This is one of the reasons why Indian companies are approaching Chinese firms for machinery, project equipment and funds.
At the meeting, four memorandums of understanding (MoUs) were signed between the two Governments. India was led by Deputy Chairman of Planning Commission Montek Singh Ahluwalia, while the Chinese delegation participated under the leadership of Chairman of the National Development and Reforms Commission (NDRC) Zhang Ping. Ahluwalia claimed that the dialogue did not include any deliberations on security issues related with Chinese investments, particularly in the telecom sector. Giving details about day-long deliberations, Ahluwalia said, “Security issues are relevant not just with Chinese investments but with that of all other countries. No specific issue regarding security was raised.”
Talking about bilateral trade, Montek said that it has reached $74 billion and is well in line with the targeted $100 billion. While admitting that this is hugely in favour of China, he said, “ The two Governments are committed to addressing the imbalance through a five-year trade development plan.”