CPM gives up on Chinese FDI

NEW DELHI: The CPM appears to have given up hopes of getting Centre’s nod for a Chinese consortium’s bid to develop Vizhinjam port in Kerala. The state government controlled by the party has said that it would re-tender the project once the Centre formally conveys its decision on barring Chinese players in the ports sector.

The National Security Council has already put on record its reservation on Chinese developing Indian ports near vital installations in the country. Only on Saturday, the chief of Naval staff Admiral Sureesh Mehta said the country should be cautious about awarding projects on the shores to foreign companies.

He said companies involved in infrastructure projects could gauge the hydrological conditions and the submarine operations conducted in the area. In other words, allowing foreign companies could harm the nation’s maritime security.

The NSC had cited China’s ties with projects in Pakistan while expressing its opposition to Chinese investment. The defence ministry then backed the NSC. The CPM was banking on new defence minister A K Antony to get the ministry to soften its stand. However, the Naval chief’s remarks have put cold water on those plans.

Mr Antony was part of the delegation led by the CPM that called on the prime minister seeking security clearance for the Chinese consortium. But if the naval chief’s assertions are anything to go by, the ministry is unlikely to deviate from the established position. The Chinese Consortium was involved in the development of Pakistan’s Gwadar port.

Meanwhile, industrialist Rajeev Chandrasekhar has entered the fray for the project after the Centre rejected the demand for allowing Chinese investment. It is understood that Mr Chandrasekhar has incorporated Hindustan Infrastructure, which is involved with bulk cargo and logistics, under his investment holding entity Jupiter Capital.

The CPM leadership in Delhi has taken up the issue with the government insisting that a level-playing field should be given to all countries. The CPM has said that the government’s criteria over security interests should be sector-wise and not country-wise.