Amid India-China boarder standoff, the Maharashtra government has put three Chinese investments on hold worth over Rs 5,000 crore. All three proposed investments were recently signed by the Maha Vikas Aghadi government at the Magnetic Maharashtra 2.0 investor meet. The projects that have been frozen are from Great Wall Motors, Hengli Engineering and BeiqiFoton Motor.
Subhash Desai, the Industries Minister, said, “The decision has been taken in consultation with the Union government. These were signed prior (to the killing of 20 Indian soldiers on the Indo-China border). The ministry of external affairs has advised not to sign any further agreements with Chinese companies.”
Great Wall Motors recently signed an MOU with the Maharashtra government and announced an investment of Rs 3,770 crore for setting up a manufacturing facility in Talegaon Industrial Park, Pune. The Chinese carmaker also announced US$ 1 billion investment in India for manufacturing world class intelligent and premium products, building supply chain, R&D centre and providing employment to over 3,000 people in a phased manner. In January 2020, the Chinese automaker agreed to buy General Motors’ manufacturing plant in Talegaon.
PMI Electro Mobility Solutions JV with China-based BeiqiFoton Motor planned to invest Rs 1,000 crore for establishing an electric bus manufacturing plant in Talegaon district. The third investment came from Hengli Engineering for setting up hydraulic equipment manufacturing plant at Chakan, Pune. The company pledge to make an investment of Rs 250 crore.
