A ministry spokesperson said the issue of putting on hold security clearance given to Chinese investment proposals was "not under any consideration".
"The clearance to investment proposals is given on the basis of a well-established procedure laid down in the past. There is no change in the policy," he said.
The spokesperson was replying to a question on whether the government was planning "to go slow" in giving security clearance to Chinese companies intending to invest in India, in the wake of a stand-off along the Sino-Indian border.
A total of 14-15 parameters are fixed in eight to nine sensitive areas such as telecom, ports and civil aviation.
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The home ministry has also spelt out locations where foreign investment is not welcome such as those close to the border and vital installations.
According to the data provided by the Ministry of Commerce and Industry, China invested USD 1.64 billion (Rs 10,094 crore) from April 2000 to March 2017.
Chinese companies have invested mostly in telecom, power, engineering and infrastructure sectors.
The standoff between troops of India and China at Dokalam area started after Bhutan, which has close diplomatic and military ties with India, protested to Beijing about People's Liberation Army troops building a road in the strategic location close to the chicken neck tri-junction.
Doka La is the Indian name for the region which Bhutan recognises as Dokalam, while China claims it as part of its Donglang region.
Reports said there was tension between the Indian and Chinese forces in Ladakh in Jammu and Kashmir and in Barahuti in Uttarakhand in the recent past.
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