- State government of Maharashtra has put on hold three agreements signed with Chinese companies
- The proposed investments were finalized earlier in Magnetic Maharashtra 2.0 investor meet
Mumbai: In a major decision, the Maharashtra Government has suspended three agreements totaling over Rs 5,000 crore signed with Chinese companies following the Galwan valley clash at the LAC in eastern Ladakh.
The decision to freeze the Chinese projects comes in the wake of the border clashes at LAC. At the all-party meeting addressed by PM Modi on Friday, Chief minister Uddhav Thackeray extended his support to the PM and the families of the martyred soldiers.
The agreements were inked recently at Magnetic Maharashtra 2.0 investor meet in a proposed investment deal of over Rs. 5000 crore. The decision was taken by Maha Vikas Aghadi government after consultation with the BJP led central goverment, as per sources.
The Centre further advised the state government not to sign any agreements with Chinese companies, sources added.
The three Chinese agreements included a Rs 3,770-crore MoU with Great Wall (GWM) to set up an automobile plant in Talegaon near Pune, PMI Electro Mobility in a joint venture with Foton (China) had announced a Rs 1,000-crore unit that would create 1,500 jobs, informed a government press release.
Other Chinese companies that made commitments for investment was Hengli Engineering, a Rs 250-crore investment as part of its phase II expansion at Talegaon, a project that would generate 150 jobs.
Magnetic Maharashtra 2.0 was an effort by the Maharashtra govt to restart the economy, which is adversely affected by the Coronavirus pandemic.
At least 20 Indian Army personnel were killed in violent face-off in Ladakh’s Galwan Valley, escalating the already volatile border standoff between the two sides.