China investment proposals on hold, not scrapped yet: Maharashtra minister

The three Chinese companies committing investment in Maharashtra include - Great Wall Motors ( Rs 3770 crore), joint venture of PMI Electro Mobility Solutions and Foton ( Rs 1000 crore) and Hengli Engineering (Rs 250 crore)
The Maharashtra government has put on hold Rs 5,020 crore worth of investment proposals from China, as it awaits a central policy on the issue.

Last week, the state government had signed memoranda of understanding (MoUs) for investments worth Rs 16,000 crore from domestic and foreign investors. These included agreements with three Chinese companies in the auto, electric mobility, and engineering segments.

But in view of heightened tensions along the Line of Actual Control (LAC) with China and the death of 20 Indian soldiers, the state government has decided to wait for a central policy on Chinese investments.

“There is a status quo with regards to the MoUs signed with Chinese companies. There is no decision to scrap the agreements,” said Maharashtra Industries Minister Subhash Desai. 

The three Chinese companies committing investment in Maharashtra are Great Wall Motors ( Rs 3,770 crore), a joint venture of PMI Electro Mobility Solutions and Foton (Rs 1,000 crore), and Hengli Engineering (Rs 250 crore).

A spokesperson for Great Wall Motors declined to comment.

Government sources say informal discussions have taken place between state and central officials, but there has been no advisory or communication from the Centre to suspend Chinese projects. “We may go slow on attracting fresh investments from China,” a source said.

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