New Delhi:
Chinese real estate giant Dalian Wanda after its announcement of $10 billion investment in India is looking for several concessions for the industrial park that it plans to develop in Haryana.
These benefits relate to the route through which it will bring the money into India and concessions on various taxes.
As per reports in leading financial dailies, 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.
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.
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." 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.
