China's Dalian Wanda seeks red carpet for $10 billion plans in India
NEW DELHI: Chinese real estate giant Dalian Wanda, which has announced a $10billion investment in India, is seeking several concessions for the industrial park that it's planning to develop in Haryana and its other investments.
These relate to the route through which it will bring the money into India and concessions on various taxes. Since many of these demands are outside the current overseas investment policy framework, the Department of Industrial Policy and Promotion (DIPP) is pursuing them with other ministries, departments and regulators, said officials with knowledge of the matter.
Dalian Wanda wants to bring in the $10 billion as external commercial borrowings (ECBs) against the permitted $750 million. DIPP has referred matter to RBI, which is said to have suggested that Wanda do it through rupee denominated or masala bonds since it breaches the ECB limit.
Owned by one of China's richest men Wang Jianlin, the Wanda Group is the world's largest property developer with interests in culture and tourism, ecommerce and department stores as well. It couldn't immediately be reached for comment.
Earlier this year, the company said it would start work on a 13 sq km park in Sonepat. Various companies from across the world will build and operate homes, hotels and factories within the park, according to the Haryana government.
The Chinese company has sought concessions that are applicable to special economic zones such as breaks on corporate and service tax besides customs and import duties. It also wants these concessions extended to companies that will set up units in its project.
The government is trying to see how best this demand can be met even though doing so will be difficult. "The company's project cannot be declared an SEZ," a senior official said. "We are discussing it with other ministries if something can be worked out." Even harder will be acceding to other demands such as concessions on minimum alternate tax and dividend distribution tax as these aren't available even to Indian companies.
Dalian Wanda has been getting strong diplomatic support, said officials, with the Chinese embassy engaging the Indian government on facilitating the industrial township. The proposed investment will amount to several times the total FDI inflow from China to India. Between 2014 and 2016, this amounted to $956 million. Between April 2000 and June 2015, India got $1.16 billion in FDI from China, 0.45% of the total that came into the country during this period.
http://economictimes.indiatimes.com...for-10-billion-plans/articleshow/54416162.cms
NEW DELHI: Chinese real estate giant Dalian Wanda, which has announced a $10billion investment in India, is seeking several concessions for the industrial park that it's planning to develop in Haryana and its other investments.
These relate to the route through which it will bring the money into India and concessions on various taxes. Since many of these demands are outside the current overseas investment policy framework, the Department of Industrial Policy and Promotion (DIPP) is pursuing them with other ministries, departments and regulators, said officials with knowledge of the matter.
Dalian Wanda wants to bring in the $10 billion as external commercial borrowings (ECBs) against the permitted $750 million. DIPP has referred matter to RBI, which is said to have suggested that Wanda do it through rupee denominated or masala bonds since it breaches the ECB limit.
Owned by one of China's richest men Wang Jianlin, the Wanda Group is the world's largest property developer with interests in culture and tourism, ecommerce and department stores as well. It couldn't immediately be reached for comment.
Earlier this year, the company said it would start work on a 13 sq km park in Sonepat. Various companies from across the world will build and operate homes, hotels and factories within the park, according to the Haryana government.
The Chinese company has sought concessions that are applicable to special economic zones such as breaks on corporate and service tax besides customs and import duties. It also wants these concessions extended to companies that will set up units in its project.
The government is trying to see how best this demand can be met even though doing so will be difficult. "The company's project cannot be declared an SEZ," a senior official said. "We are discussing it with other ministries if something can be worked out." Even harder will be acceding to other demands such as concessions on minimum alternate tax and dividend distribution tax as these aren't available even to Indian companies.
Dalian Wanda has been getting strong diplomatic support, said officials, with the Chinese embassy engaging the Indian government on facilitating the industrial township. The proposed investment will amount to several times the total FDI inflow from China to India. Between 2014 and 2016, this amounted to $956 million. Between April 2000 and June 2015, India got $1.16 billion in FDI from China, 0.45% of the total that came into the country during this period.
http://economictimes.indiatimes.com...for-10-billion-plans/articleshow/54416162.cms
