CHENNAI: Will the standoff between India and China near the border and the killing of 20 Indian soldiers hit Chinese investments and funding for infrastructure projects in Tamil Nadu?
As the anti-China chorus begins rising in India with the tensions simmering on the border, official sources are keeping their fingers crossed both about Chinese investments as well as funds from banks there for infrastructure projects.
The key projects that could face an immediate impact if the tension continues include the second phase of the Chennai Metro Rail project and the Peripheral Road project.
The Beijing-based Asian Infrastructure Investment Bank (AIIB) has agreed to provide a loan worth $438.75 million to the Chennai Metro Rail for the construction of Chennai Metro's 47 km Line-5's 26 km section connecting CMBT with Sholinganallur and $356.65 million to finance the 26.1 km Line-4 connecting the Lighthouse-Poonamallee Bypass. This will come under the scanner if the conflict escalates.
While Chennai Metro rail sources refused to comment on the issue, it is felt that if the conflict simmers, the funds from AIIB could possibly be hit depending on the Centre's decision.
Similarly, the AIIB's $378-million loan for phase II and III of the long-awaited peripheral ring road project which the Centre sanctioned in September last year could be reviewed.
The state was keen on AIBB funds for the 57km stretch between Thatchur in North Chennai and Sriperumbudur, linking Kolkata, Tirupati, and Bengaluru national highways. The ring road will reduce the burden on city roads, and travel time to the other national highways and Ennore and Kattupalli ports in north Chennai.
Meanwhile, Airport Authority of India got the equipment for the first phase of the T2 integrated terminal building at the Chennai airport which is expected to be ready by middle of next year.
"The equipment for the first phase, which includes a travelator arrived in March," airport sources said.
On the equipment from China for the second phase, sources refused to comment.
Similarly, the investment flow from China could also be hit.
Shenzen-based BYD, Chinese manufacturer of automobiles, battery-powered bicycles, buses, forklifts and rechargeable batteries had vowed to invest Rs 2,800 crore in a mobile components facility, electric vehicles and electric batteries. An agreement to this effect was already signed in this regard.
Official sources said that it is too early to comment on whether the investments from China will be hit.
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