Sanjha Morcha

Chinese investments in Maharashtra in jeopardy

Chinese investments in Maharashtra in jeopardy

Maharashtra CM Uddhav Thackeray. File photo

Shiv Kumar
Tribune News Service
Mumbai, June 19

The Uddhav Thackeray government is having second thoughts about going ahead with the Memoranda of Understanding (MoUs) signed with Chinese companies for investing more than Rs 5,000 crore in the state’s automobile sector earlier this week.

The Congress party, which is part of the Maha Vikas Aghadi government in the state, has demanded that MoUs signed hours before 20 Indian soldiers were killed by the Chinese People’s Liberation Army on Monday be scrapped.

Congress party’s ministers in Thackeray’s Cabinet have told the chief minister’s emissaries that the government should not go ahead with the MoUs, sources said.

Industries Minister Subhash Desai too has indicated that the Maharashtra Government was awaiting further clarity on the matter from the Central government.

“The MoUs were signed before the clash between the Indian and Chinese forces in Ladakh. We will now abide with the Central government’s directives,” Desai told reporters here.

Under the MoU, China’s Great Wall Motors is to invest Rs 3,770 crore for taking over General Motors’ facility at Talegaon near Pune.

The company has also announced plans to gradually increase its investment to USD 1 billion to upgrade the factory.

Another Chinese company, PMI Elector Mobility Solutions has agreed to invest Rs 1000 crore in another factory at Talegaon while Hengli Engineering proposed to up a unit at an investment of Rs 250 crores.

State government officials say foreign investments in India have to be cleared by the Foreign Investments Promotion Board of the Central government.