For instance, Haier Appliances India has got government nod to invest INR 184 crore in AC component manufacturing after almost two-and-a-half years. The Department for Promotion of Industry & Internal Trade had directed the Chinese firm in November 2021 to take Press Note 3 clearance for its proposal under the production-linked incentive scheme for white goods.
Haier India president Satish NS confirmed the development. Industry executives said USD 2 billion auto component manufacturer Anand Group has sought Press Note 3 clearance to set up a JV with a Chinese partner to manufacture components. Uno Minda, another auto component manufacturer, has applied for approval of its proposed JV with China’s Suzhou Inovance Automotive Co to locally produce electric vehicle parts. Anand Group and Uno Minda did not respond to queries.
Dixon Technologies is preparing to file for Press Note 3 clearance for its proposed joint venture with HKC Corp for manufacturing liquid crystal modules, thin film transistor liquid crystal display modules and assembly of smartphones and televisions. Dixon will own majority shares. Following border tensions, the Indian government began looking askance at investments by Chinese companies in India.
Press Note 3 norms issued in 2020 stipulated that a company based in a country that shares a land border with India (such as China) can invest only after government clearance and that the automatic route was thereby withdrawn. This had curbed Chinese investment in India, including JVs. Voltas’ proposal to forge a JV with China's Highly Group, with the Tata Group holding a minority stake, did not receive approval, forcing the company to scrap the plan.
Government officials recently signalled to industry leaders that Chinese JV proposals may get cleared if the Indian partner has majority shareholding, they are critical for Make-in-India and are focused on components that increase domestic value addition.
Dixon is exploring more JVs with Chinese companies to deepen component manufacturing while retaining majority stakes. In fact, the company’s managing director Atul B Lall is currently in Beijing to finalise partnerships.
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