MUMBAI: After the border clash between India and China, the Maharashtra government has put Chinese investments in the state on hold.
The state had recently inked Memorandums of Understanding (MoUs) worth Rs 16,000 crore with various firms. These include Chinese firms Hengali Engineering which invested Rs 250 crore, PMI Electro Mobility Solution JV with Foton which proposed an investment of Rs 1000 crore and Great Wall Motors which signed a Rs 3700 crore deal. All these companies wanted to invest in Talegaon, Pune, with around 4500 jobs expected to be generated.
Maharashtra industries minister Subhash Desai said that they have decided to put the contracts with the Chinese companies on hold until further orders.
“We will consult with the central government before things move forward. However, we have not cancelled the MoU with these firms. The agreements will remain but for the time being there will no further movement,” Desai said. Government sources said the state will not allot land and other facilities to the Chinese firms till further orders.
Earlier, the Opposition in Maharashtra had demanded the cancellation of MoUs with these Chinese firms in the backdrop of growing tension along the India-China border. BJP MLA Yogesh Sagar said that the central government has cancelled various projects with China and hence the Maharashtra government should follow suit by cancelling its recent MoUs with China.
Desai said Maharashtra is a hot destination for investment by foreign firms. “We will welcome more food processing industries. Besides, there is a long coastline that can be utilized for many things. We will explore many options to increase investment,” he added.