With calls getting loud to boycott business deals with the Chinese in response to the clashes at Galwan last week, the Maharashtra government has applied brakes on three projects signed with companies from the neighbouring country. The three memorandums of understanding (MoUs) that have been put on hold are with Great Wall Motors (worth Rs 3,700 crore), PMI Electro Mobility Solutions (Rs 1,000 crore) and Hengli (Rs 250 crore).
All the three Chinese projects, signed during the Magnetic Maharashtra 2.0 initiative undertaken recently, were to invest in the state's Talegaon district.
“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," said industry minister Subhash Desai told TOI. According to various media reports, the Maharashtra government will wait for the Centre to formulate an investment policy before taking a call on Chinese MoUs.
China’s largest SUV-manufacturer, GWM, signed the MoU with the Maharashtra government in a virtual meeting with Chinese ambassador Sun Weidong, Maharashtra Chief Minister Uddhav Thackeray and GWM President James Yang as well as MD Parker Shi.
In January this year, Great Wall Motors signed an agreement to acquire the Talegaon plant from US-based multinational General Motors. The plant covers an area of around 300 acres and was expected to generate employment for over 3,000 people, GWM had said as it announced the signing of the memorandum.
The Maharashtra government's decision to hold the projects comes a day after its coalition partner Congress on Sunday asked CM Uddhav Thackeray to cancel the agreement with GWM.
