As a result of the rising tensions between India and China, Maharashtra has shelved three foreign direct investments (FDI) from China worth around ₹5,020 crores on Monday.
The External Affairs Ministry has recommended that States do not sign fresh agreements with Chinese firms.
On 15 June Maharashtra’s administration launched Magnetic Maharashtra 2.0, in the post-Covid-19 pandemic, to revive the state economy. The government then announced it had signed an agreement worth $16,030 crore with domestic and international investors.
Maharashtra Chief Minister Uddhav Thackeray said then at a video conference that small and big businesses coming to the state will not have trouble building their businesses. The State expects to sign another 10 thousand crore FDI agreements in the next few days.
The companies that entered the Maharashtra MoU include Great Wall Motors, a China-based company that has announced its plan to spend 3 770 crores in an automotive facility in Talegaon, Pune, creating 2000 jobs.
In Talegaon phase no. 2 the Chinese engineering firm Hengli plans to invest 250 crores and about 150 jobs.
The PMI Electro Mobility Solutions car manufacturer (in JV with China-based Foton) had announced a 1,000 crore investment in Talegaon that offers 1,500 employees jobs.
