Outrageous or Splendid! China wishes to turn bits of Haryana into Shanghai

To develop an industrial zone and township in Haryana, Chinese real estate major Dalian Wanda Group is likely to acquire 100 sq km of land in the state. The Chinese embassy has sought the Central government's help to facilitate the township project.

This will be one of the biggest investments in India by a Chinese company that wants a blanket clearance for all the projects that will come up in the land it wants to acquire, a senior official said, but added that it would have to furnish its complete plan to get any such facility.

"The Chinese embassy has requested us to assist the Wanda group with regard to their investment plans in India. However, we are waiting to get a detailed plan from the company to understand their requirements," said a senior official at the Department of Industrial Policy and Promotion (DIPP).

DIPP, which formulates and monitors industrial policy and investments, has asked the Chinese company to provide details of the concessions and incentives it wants for the project.

"We have not got any response from them in this regard yet. Once they tell us their plans and expectations we can see how it can be taken forward," said the official.

India allows 100% foreign direct investment (FDI) in townships through the automatic route.

The Haryana government has already assured the Chinese group that it will make the required land available. Wanda group is the world's largest property developer with interest in culture and tourism, e-Commerce and department stores as well.

It reported annual income of $38 billion, or over Rs 25,000 crore, in 2014. It operates 123 Wanda Plazas, 78 hotels including 68 five-stars, 6,600 cinema screens and 99 department stores in China. In June this year, Wanda group had expressed its interest in building five industrial and theme parks besides shopping malls in India.

The company has plans to invest $10 billion in the next four-five years for building 10 urban complexes in India.

This is several times the total FDI inflows from China from the start of this century. Between April 2000 and June 2015 India has drawn $1,161 million, or over Rs 7,600 crore, FDI inflows from China, or just 0.45% of the total FDI equity that came into the country during this period. Prime Minister Narendra Modi during his visit to Beijing in May had invited investments from China.

India eased the FDI rules for the construction sector in December 2014, bringing down the minimum capital investment to $5 million and allowing foreign investments in with a minimum built area of 20,000 square metres, down from a previous 50,000 sq m limit.

(Image: Indiatimes)