Huawei in Tamil Nadu

The Home Ministry has cleared a proposal of Chinese telecom giant Huawei to set up a manufacturing unit in Tamil Nadu with riders like appointment of Indians to key posts of chief of technical operations and chief security officer.

The move came almost two months after Prime Minister Narendra Modi's visit to China where he affirmed his commitment to creating a business environment suitable for both the countries.

The Home Ministry's security clearance to Huawei Telecommunications for setting up a unit for electronics and telecom hardware came with certain conditions, including making it incumbent upon the Chinese multinational networking and telecommunications equipment and services firm to appoint Indians in key posts like chief of technical operations and chief security officer.

Besides, Home Ministry's clearance will be further required if Huawei appoints foreign nationals as chairman, managing director, chief executive officer and chief financial officer.

Huawei wants to set up a unit for electronics and telecom hardware and support services, including trading and logistics activities, at the Special Economic Zone, Sriperumbudur in Tamil Nadu at a cost of Rs 25 crore.