MAHA TO MAINTAIN STATUS QUO ON `5,020 CR MOUs WITH CHINESE FIRMS

The Maharashtra government has maintained a status quo on MoUs with Chinese firms worth Rs 5,020 crore following the Galwan Valley bloody clash between Indian and Chinese border soldiers at Ladakh in which 20 Indian army personnel were killed.

The decision came after the central government sought details about Chinese investments as well as importexport trade from state governments.

“As of now status quo will be maintained on the MOUs with the Chinese companies for the moment,” Maharashtra’s Industries Minister Subhash Desai told Financial Chronicle over the phone.

He said this does not mean that they have been rescinded or cancelled.

“In fact, further developments on the same are awaited,” clarified.

The three Chinese companies Hengli Engineering, PMI Electro Mobility Solutions (joint venture with Foton) and Great Wall Motors had committed an investment of Rs 250 crore, Rs 1,000 crore and Rs 3,770 crore, respectively, in the Talegaon industrial belt in Pune, the Maharashtra Industries’ official statement said on Monday. The MoUs were signed on June 15 under the Magnetic Maharashtra 2.0 investor summit, hours before the face-off took place.

Great Wall Motors said on its part it “remains committed to kick-starting production and going ahead with its first car launch in 2021.”

In January this year, Great Wall Motors signed an agreement to acquire the Talegaon plant from US-based multinational General Motors to produce electric vehicles and SUV models. the minister