News

Border stand-off: Maharashtra ‘puts on hold’ MoUs on Chinese investments worth ₹5,020 cr

?OUR BUREAU Mumbai | Updated on June 22, 2020 Published on June 22, 2020

Industries Minister Subhash Desai

In view of India-China face off, the Maharashtra government has decided to put on hold investments worth ₹5,020 crore from three Chinese companies, which were expected to generate employment to 3,692 persons in the State.

Industries Minister of Maharashtra, Subhash Desai, said on Monday in a media statement that the Memorandum of Understanding (MoU) signed on June 15 by the State government for attracting investments in the State have been put on hold for the moment. This does not mean that they have been rescinded or cancelled.

The Maharashtra government is awaiting clear policy directions from the Union government, on these three projects collectively worth ₹5,020 crore, in the wake of the current changed environment in India, said the Industries Minister.

On June 15, under the second phase of Magnetic Maharashtra investment programme, the State government signed up MoUs for a ₹3,770 -crore investment with Great Wall Motors, which is supposed to generate employment for 2,042 persons at Talegaon industries area, near Pune. The second MoU is with Henglu Engineering for ₹250-crore investment and 150 person employment potential for a manufacturing unit at Talegaon phase-II.

The third MoU has been signed with PMI Electro Mobility Solutions in a JV with Foton Motors of China for a ₹1,000-crore investment at Talegaon industrial area near Pune with an employment potential of 1,500 persons.

Magnetic Maharashtra is an investment programme of the State Government under which MoUs are signed primarily with potential investors from the manufacturing and services sector. After the MoUs are signed the companies, based on the tax sops offered by the State government and smooth land acquisition process, take a final call for investments.

On June 15, the State government had signed 12 MoUs with a total value of ₹16,000 crore. Along with Chinese, the US, South Korea, Singapore and Indian companies had signed up for the MoUs. Among the other notable investments is the ₹760 crore investment of Exxon Mobil (America), which is planned at Raigad, near Mumbai.

Published on June 22, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.