NEW DELHI, Feb. 10 (UPI) -- India has softened its stance preventing the entry of Chinese companies in the infrastructure sector.
The Economic Times newspaper said Friday that Indian foreign secretary Shyam Saran has formally conveyed India's fresh position on the issue to the federal government.
The Indian foreign ministry has recommended a go ahead to Hong Kong-based Hutchison Port Holdings' bid for an offshore container terminal in Mumbai.
"Negative publicity of our denial of security clearance to major global players like Hutchison Port Holdings may damage India's credentials as an investment destination," said Saran.
"Unless our agencies (intelligence) have specific concerns, a blanket ban on global investors from infrastructure projects in India limits our options in the tendering process," Saran said.
With the change in India's stance, the entry of large oil, gas and construction companies to the country will be smoother.
The Indian Foreign Office has asked the Cabinet Committee on Security to spell out institutional arrangements for addressing issues related to the participation of foreign companies in India's infrastructure projects.
The committee is expected to meet soon to decide on the eligibility of Hutchison Port Holdings for the projects.
The departments of shipping and defense have endorsed the position taken by the foreign ministry.
"There is nothing exceptional if a Hong Kong-based entity or its main promoter would have links with the authorities in China, which is also quite understandable from the business point of view," Saran said.
He said India cannot but work towards greater economic links with China.
