New
Delhi: Addressing security concerns arising out of
foreign investments coming into the country, the National
Security Council Secretariat (NSCN) has suggested putting
in place mechanism to bar acquisitions, mergers or takeovers
of Indian companies if there is evidence that a foreign
controlling interest might threaten national security.
NSCN
has suggested setting up a vigilance team based on the
lines of the Committee on Foreign Investment in the United
States (CFIUS) to review foreign investments. The NSCN
has also mooted including communication network management
equipment within the purview of industrial licences governed
by the Industries Development and Regulation Act, 1951.
This
could have an impact on the plans of equipment manufacturers
such as Nokia, Ericsson and Motorola who have announced
plans to set up telecom equipment production units in
the country.
The
NSCN suggestions come after concerns raised by the National
Security Advisor about the security implications of Egypt''s
mobile telecom company Orascom''s decision to acquire 19.3
per cent stake in the Hong-Kong based Hutchison.
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