GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government

Maharashtra government has announced that the Chiese projects that were recently undertaken have been put on hold. The decision has been made by the government in the wake of the current tension running between both nations.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

Out of the 12 agreements signed by various companies with the government, three of them belonged to Chinese based companies. The proposed investments constitute a total of over Rs 5,000 crore.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

Subhash Desai, Industry Minister, said, "The decision has been taken in consultation with the Union government. These were signed prior (to the killing of 20 Indian soldiers on the Indo-China border). The ministry of external affairs has advised not to sign any further agreements with Chinese companies."

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

The three agreements that are being put on hold include one of them signed by GWM automotive manufactures to set up a manufacturing plant in Talegaon near Pune. The company has announced earlier that it has signed an MoU agreement with the Maharashtra government worth Rs 3,770 crore to being production operations in the country.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

The company had also showcased a whole host of vehicles at the 2020 Auto Expo ahead of its launch in the Indian market. It ranged from SUVs, to affordable electric-cars, to upcoming concept specifically tailored to meet the demands of India customers. Also, showcases at the event were a range of SUVs from the brand's Haval product line-up.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

Another company that signed the agreement was PMI Electro Mobility, who is in a joint venture with Foton (China). The partnership announced that a sum of Rs 1,000 crore investment, that will be made to set up a manufacturing unit. It also said that with the new unit setting up it would create around 1,500 jobs in the country.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

The third company that was listed on the singed MoUs under the ‘Magnetic Maharashtra 2.0' initiative was Hengli Engineering. It announced a commitment of Rs 250 crore investment as part of its phase II expansion at Talegaon, and claimed that the new project will generate 150 jobs.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

The Magnetic Maharashtra 2.0 initiative was an attempt by the government to boost the economy during the post-COVID-times. Apart from the above three companies, the other nine agreements were signed by brands based out of Singapore, United States, and several Indian companies as well. The government confirmed that these nine agreements are being processed.

GWM & Other Chinese Projects Worth Rs 5,000 Crore Put On Hold By Maharastra Government: Details

Thoughts About The GWM & Other Chinese Projects Worth Rs 5,000 Put On Hold By Maharastra Government

The situation between both nations is currently not looking good. The recent clash with both nation's army has resulted in India losing soldiers. As a result, the Shiv Sena Chief, Uddhav Thackeray stated that we will support the decision taken by our Prime Minister during these time times. This could result in further delays with Chinese automotive brands who have planned to enter the Indian market.

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Read more on: #auto news
Article Published On: Monday, June 22, 2020, 14:43 [IST]
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