In the latest update to the news that the Maharashtra government has put on hold new investments from three Chinese companies, following the recent face-off between Indian and Chinese troops in the Galwan Vallkey in Ladakh, there is to be status quo with regard to the MoUs worth Rs 5,020 crore. This was stated by Subhash Desai, Minister of Industries, Government of Maharashtra today.
As per a PTI report, Desai, however, clarified that the status quo does not mean cancellation of the MoUs relating to the three projects. According to an official statement, Desai said the state government is awaiting a clear policy decision regarding the projects in the present condition.
The three planned projects in Maharashtra – from GWM (Great Wall Motors), PMI Electro Mobility Solution (JV with China’s Foton) and Hengli Engineering – together constitute Rs 5,020 crore worth of investment. They are part of the 12 MoUs, worth Rs 16,030 crore, signed by the state government as part of the Magnetic Maharashtra 2.0 programme, which kicked off on June 15.
One of the major investments in the automotive segment is from Great Wall Motors, which has announced a Rs 3,770 crore investment towards setting up its plant in Talegaon, Pune, and also hire more than 2,042 people. In January 2020, Great Wall Motors had signed an agreement with GM to acquire GM India’s manufacturing facility in Talegaon.
The virtual MoU signing in ceremony on June 15 saw the presence of James Yang, president and Parker Shi, MD of GWM India, along with Chinese ambassador Sun Weidong and Minister of Industries, government of Maharashtra, Subhash Desai. At the time, Parker Shi had said, “This would be a highly automated plant in Talegaon with advanced robotics technology integrated in many of the production processes. Overall we are committed to US$ 1 billion investment in India in a phased manner, which is directed towards manufacturing world-class intelligent and premium products, R&D centre, building supply chain and providing jobs to over 3000 people in a phased manner.”
The second major investment is from Haryana-based coach manufacturing company PMI Electro Mobility Solution with its Chinese partner Beiqi Foton Motor to set up an electric bus manufacturing plant in Talegaon of Rs 1,000 crore and create 1,500 jobs.
The third is that of hydraulic equipment manufacturer Hengli Engineering, which plans to invest Rs 250 crore in a facility at Chakan, Pune (see detailed table below).