They cited project execution difficulties due to delays in processing visas for foreign experts, people aware of the issue told ET. This has emerged as a bottleneck amid signs of a pickup in private capital formation. The manufacturers have flagged these issues to their administrative ministries.
The idea is to have a streamlined visa process to address foreign manpower issues, as with PLI beneficiaries.
They suggested the creation of a special cell and a mechanism to ensure the timely issuance of visas for foreign experts as well as officials or engineers from overseas original equipment suppliers (OEMs).
Equipment & Expertise Worries
“Many project-critical activities such as power plant commissioning, flue gas desulfurisation installation and capital overhauling are getting delayed and affected due to delays in grant of visas for Chinese OEMs, contractors, engineers,” said a representative of the Association of Power Producers. The grouping represents more than 20 leading private power developers.
Companies are facing issues in machinery installation and component manufacturing without support from original suppliers, according to the industry.
India imported $53.8 billion of boilers, machinery and mechanical appliances, electrical machinery and equipment, among other project goods, in FY24, up 10% from the preceding year.
Another person said the renewable energy sector is facing challenges as China continues to be a major exporter of equipment sourced by the domestic solar power industry.
Metal producers have also raised similar concerns, flagging delays in several expansion projects. “Many expansion projects in the aluminium industry – worth over $2 billion – are stalled as they require highly technical experts from China, with specialised expertise for execution as per the patented technology, which is not available locally,” a representative of the Aluminium Association of India said.
Plans to Streamline
The government earlier this month indicated its intent to streamline norms for grant of work visas. “We have already got a streamlined process for PLI beneficiaries. We’re trying to get it extended to other non-PLI beneficiaries operating in those same strategic sectors,” said Rajesh Kumar Singh, secretary, Department for Promotion of Industry and Internal Trade (DPIIT). “A final decision hasn’t been taken but we’re moving in that direction. Hopefully, it will be done… visa is a subject under the ministries of external and home affairs.”
“This must be replicated across all core sectors to avoid delays,” said one of the people cited earlier.
In April 2020, the Centre made prior government approval mandatory for foreign direct investment (FDI) from countries that share a land border with it, irrespective of sectoral caps, by amending Press Note 3 (PN3) to curb opportunistic takeovers of Indian companies.
The government subsequently banned some Chinese apps and also made prior security clearance and registration mandatory for government supply contracts. Visas for Chinese personnel became difficult to get amid security concerns as border tensions escalated.
