New Delhi, May 9: Minister of state for environment Jairam Ramesh, who described home ministry policies with regard to Chinese projects in India as “alarmist” and “paranoid” in Beijing on Saturday, has been snubbed by the home ministry, which has squarely rejected his contention. Ministry sources said there will be no toning down of security checks before clearances are given to Chinese companies for export of equipment to India.

Also, with fresh security concerns emerging, Chinese ambassador Zhang Yan has sought an appointment with home secretary G.K. Pillai later this week to discuss these issues. Sino-Indian ties, incidentally, have seen their share of ups and downs over the years. While on the downswing last year, the first quarter of 2010 has been relatively quieter.
Chinese enterprises had bagged contracts worth $25 billion in India by the end of 2008. Companies from China are executing projects in areas such as highways, metro rail, steel plants and the power sector.
The controversy triggered by Mr Ramesh raises doubts on whether there are differences within the government on its China policy. While the government has consciously decided to adopt a cautious stand on the proposed Chinese projects in India due to security concerns, Mr Ramesh virtually echoed the CPI(M) line on the matter, often articulated by party general secretary Prakash Karat and other leaders.
Mr Ramesh’s remarks in Beijing have expectedly led to a flutter in government circles here. Congress spokesperson Manish Tiwari, however, said it would be appropriate to comment on the “purported” statements only after talking to Mr Ramesh first.
Rejecting the environment minister’s charges, top government sources told this newspaper that stringent security checks were enforced by India after the security agencies learnt that some Chinese companies desiring to export telecom equipment to India were either being directly run by the Chinese People’s Liberation Army or are indirectly connected with it. Ministry sources also raised concern over the attempts by computer hackers from China to target computer systems in India’s defence and security establishments.
“There is no blanket ban on any Chinese company. Security clearances are given on a case-by-case basis. Procedures have to be followed. If any links with the PLA are found, we will not allow their products to be sold in India,” these sources told this newspaper.
To a question on whether Central agencies had detected a “‘malware” (malicious software) embedded in certain telecom equipment to help Chinese intelligence agencies access telecom networks in India, the source said: “It’s very difficult to say. We know that hacking is going on. From India, a large amount of information is going to four to five places in China. It is a matter of concern, and we have to be careful.”
Indian security agencies say an organised ring of Chinese computer hackers continue to attempt hacking of computers in India’s defence institutions and security establishment. A recent report by a Canadian research group had claimed that Chinese hackers running an espionage ring had hacked computers, including those at the National Security Council secretariat, Army and Air Force establishments and Indian diplomatic missions abroad.
Sources pointed out that even countries like the United States and Britain do not allow large imports of electronic equipment from China. “India is the only country in the world which is imports 80 per cent of telecom equipment from China,” the source said. The role of lobbyists, who might be promoting certain Chinese companies despite security concerns, also could not be ruled out, the sources said.
From February this year, the telecom ministry had also stopped giving permission to telecom companies to buy equipment from Chinese companies such as Huawei and ZTE due to concerns expressed by the security agencies. These agencies fear that a Chinese company might plant software in the core telecom equipment which might allow Chinese intelligence agencies to monitor telecommunications with the country from abroad. Last year the government had also banned the import of Chinese mobile phones that did not have international mobile equipment identity (IMEI) numbers.
Two years ago, in a veiled reference to Chinese companies, the then Chief of Naval Staff, Adm. Sureesh Mehta, had cited the “national position” that the country should be cautious in awarding contracts to “certain types of companies to get into infrastructure projects on the shores (of India)”.
Adm. Mehta had also said: “In naval parlance, China is developing a maritime battlefield. They are building friends (around India) who will help them when they need it.”
Sino-Indian relations came under added strain in 2009 with reports of intensified Chinese border transgressions, China’s decision to build infrastructure projects in Pakistan-occupied Kashmir such as the Jhelum and Bunji hydroelectric projects and upgradation of Karakoram highway, heightened rhetoric by China over the Dalai Lama’s visit to Arunachal Pradesh, and China’s unwillingness to stop the practice of issuing “stapled” visas for Indians living in Jammu and Kashmir.
In 2009, New Delhi had also detected instances of misuse of business visas by unskilled or semi-skilled Chinese nationals who were brought to this country to work on infrastructure projects bagged by Chinese companies. Subsequently, New Delhi had asked these Chinese nationals to convert their business visas to employment visas. New Delhi is now toying with China-specific measures such as the introduction of “project visas” for Chinese nationals working in India on infrastructure projects.
Predictably, Chinese companies doing business in India are upset about any suspicions regarding them. Senior executives from Huawei have sought appointments with officials from the home, external affairs and telecom ministries to try and convince them that the company poses no threat to India’s security.
(With reporting by Namrata Biji Ahuja, Sridhar Kumarawami, Ramesh Ramachandran, Pawan Bali and Venkatesh Kesari)

Age Correspondents