Existing MoUs to be maintained though new investments by Great Wall Motors and other Chinese companies to be put on hold
Keeping the status quo does not mean the cancellation of investments totalling Rs 5,020 crore from the three Chinese companies - Great Wall Motors, BeiqiFoton Motor and Hengli Engineering
In an update to the story that the Maharashtra government has put investments from Chinese companies on hold following the recent face-off between Indian and Chinese troops in the Galwan Valley in Ladakh, there is to be a status quo with regard to the MoUs worth Rs 5,020 crore. This was stated by Subhash Desai, Minister of Industries, Government of Maharashtra today.
As per a PTI report, Desai, however, clarified that the status quo does not mean cancellation of the MoUs relating to the three projects. According to an official statement, Desai said the state government is awaiting a clear policy decision regarding the projects in the present condition.
While this means that existing agreements are expected to continue, but no new investments will be allowed. Companies affected by this include Great Wall Motors, BeiqiFoton Motor and Hengli Engineering.
One of the major investments in the automotive segment was from Great Wall Motors, which announced a Rs 3,770 crore investment towards setting up its plant in Talegaon, Pune, and a plan to hire more than 2,042 people. In January 2020, Great Wall Motors had signed an agreement with General Motors to acquire GM India’s manufacturing facility in Talegaon.
The virtual MoU signing-in ceremony was in the presence of James Yang, president and Parker Shi, MD of GWM India, and Chinese ambassador Sun Weidong, and Minister of Industries, Government of Maharashtra, Subhash Desai. At the time, Parker Shi had said, “This would be a highly automated plant in Talegaon with advanced robotics technology integrated in many of the production processes. Overall, we are committed to a US$ 1 billion investment in India in a phased manner, which is directed towards manufacturing world-class intelligent and premium products, R&D centre, building supply chain and providing jobs to over 3,000 people.”
The second major investment is from Haryana-based coach manufacturing company PMI Electro Mobility Solution, with its Chinese partner BeiqiFoton Motor, to set up an electric bus manufacturing plant in Talegaon worth Rs 1,000 crore and create 1,500 jobs.
The third is that of hydraulic equipment manufacturer Hengli Engineering, which planned to invest Rs 250 crore in a facility at Chakan, Pune.
These three projects, which are worth Rs 5,020 crore, are a part of 12 MoUs (worth Rs 16,030 crore) signed by the state government under the 'Magnetic Maharashtra 2.0' programme. The programme kicked off on June 15.
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