Chinese companies have been selected for the construction of two natural gas pipelines in the country, but various permissions from the Indian government have still not materialised.
NEW DELHI: On the eve of official welcome of Chinese president Hu Jintao, the usual expectations of Indo-China cooperation in energy were alive, but petroleum ministry officials said an understanding is already in place. The two fastest growing economies have in the past collaborated on the hunt for energy in third countries, though India seemed to be dithering on security clearances to Chinese investment and expatriates.
Sources told DNA Money, the ministry of external affairs has last week communicated to the Indian embassy in Beijing that visas should be issued to Chinese residents on merit. “The Indian embassy has been asked by the ministry to consider issue of visas positively on merit basis,” a source said.
Chinese companies have been selected for the construction of two natural gas pipelines in the country, but various permissions from the Indian government have still not materialised. GAIL India had awarded the Chinese company DQE work for Spred-II of Dahej-Uran Pipeline Project (DUPL) while Reliance Gas Transportation Infrastructure Ltd (RGTIL) had awarded 14,000 km East West Pipeline project to China Petroleum Pipeline Bureau (CPP). Senior officials said that while GAIL pipeline work was awaiting clearance from the ministry of finance and Reserve Bank of India, that of Reliance Industries Ltd-owned RGTIL was stuck due to issuance of visa to 1800 Chinese expatriates.
“There were doubts whether the existing labour laws here permitted hiring of non-executive workforce from abroad. RGTIL had given an undertaking from its Chinese contractor that skills for each of the positions cannot be readily sourced in India,” said an official.
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