The state of Maharashtra in India put three memorandums of understanding (MoUs) with Chinese companies worth Rs 5,000 crore on hold following the Galwan Valley clash, according to various media reports and government sources.
The decision came after the central government sought details about Chinese investments as well as import-export trade from state governments.
The three MoUs that have been put on hold are with Great Wall Motors (worth Rs 3,700 crore), PMI Electro Mobility Solutions (Rs 1,000 crore) and Hengli (Rs 250 crore). They were signed during the Magnetic Maharashta 2.0 initiative undertaken recently. All the three Chinese firms were to invest in Maharashtra’s Talegaon district.
The Maharashtra government will wait for the Centre to formulate an investment policy before taking a call on Chinese MoUs, sources added.
Great Wall Motors, a Chinese automaker recently pledged US$ 1 billion investment in India in phases. The is supposedly closely watching developments but it “remains committed to kick-starting production and going ahead with its first car launch in 2021.”