Government is tightening its grip on Chinese businesses in India
The Indian government is now imposing stringent rules for the Chinese businesses delving into the power transmission sector in India. It includes doing frequent and rigorous checks on their power and telecom equipment for the presence of malware. According to officials, this is being done to keep an eye on China's proliferation into sensitive sectors. Here's all you need to know about it.
What is it about?
Currently, Chinese firms, like Harbin Electric, Dongfang Electronics, Shanghai Electric and Sifang Automation, either provide equipment or handle power distribution networks in as many as 18 Indian cities. Citing security concerns and also the lack of reciprocal access by them to the Chinese markets, local firms have been protesting against the presence of Chinese firms for quite some time now.
What is being done about it?
The plea, to keep a check on the spread of Chinese businesses in India, is now being addressed. As India-China relationship worsens, the center believes that these businesses could become possible channels for China to deploy cyberattacks. The government is mulling on imposing new conditions, as per the CEA report, which would favor local firms when it comes to bidding for power transmission contracts.
What does the report say?
Under the new rules, it'll be mandatory for firms, investing in India, to have a presence in the country for at least 10 years, have Indians at the top echelons of management and have employees, who've lived in India for a certain period. They'll have to provide details on where they procure raw materials from and will be immediately banned if malware is discovered.
No names have been taken
The new policy is taking the possibility of a cyberattack on Indian power systems into serious consideration, said CEA chairman R.K. Verma. Although the report has no direct reference to any Chinese firm, officials privy to the matter said that these new guidelines have been specifically designed to curb the growth of Chinese firms in India because of the underlying security risks.
Keeping an eye on the telecom sector
The government is also keeping an eye on Chinese firms' presence in the telecom sector. Ministry of electronics and IT has asked 21 smartphone makers, mostly Chinese, to submit details on "safety and security practices, architecture frameworks, guidelines, standards, etc followed in your product/services in the country." Objections have also been raised against China's Shanghai Fosun Pharma's proposed takeover of Indian drugmaker Gland Pharma.
Balancing the scales
India uses Chinese equipment to provide affordable electricity to those off the grid. However, now the rules would curb their access to the Indian market and tip the scale in favor of local firms. Several checks and protocols are also being initiated for the same. A person involved in the drafting of the CEA report said to ET, "This is recent and happening quietly."
