China is set to open its third Consulate in India in Chennai.
After prolonged talks both sides agreed to establish their Consulates in Chengdu and Chennai in a bid to firm up diplomatic ties as relations have improved in recent years with growing trade, investments, official sources told PTI.
Besides the Embassy in Beijing, India currently has its Consulates in key commercial hubs of Shanghai and Guangzhou in addition to the one at Hong Kong, which is termed as a Special Administrative Region.
An official announcement regarding this is expected to be made during Prime Minister Narendra Modi's visit here in May.
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India has settled for Chengdu after China was not receptive to New Delhi's proposal to re-establish its Consulate in Lhasa, the provincial capital of Tibet, which was closed during the 1962 war.
China has agreed to open a new land route for Indian pilgrims to travel to Kailash Mansarovar through Nathu La Pass but is reluctant to allow re-establishment of the Indian Consulate in Lhasa, considering its political sensitivities in Tibet.
A prominent tourist destination in China, Chengdu houses the famous breeding centre for giant Pandas and the Chengdu Military Command overseeing the India-China border region along Tibet.
For China, Chennai will mark a new opening in South India where it is looking to step up investments in the country's most developed regions.
China has undertaken a feasibility study to build a high speed railway connecting Chennai and New Delhi.