Govt seeks clarification on Chinese investments

Amid the Chinese government’s willingness to "deepen friendly and cooperative" relations with Afghanistan following the Taliban takeover, the Maharashtra Government on Tuesday in its presentation to the NITI Aayog team urged clarification with regards to investments and acquisitions by Chinese companies in the state.

At the meeting chaired by Chief Minister Uddhav Thackeray, the state government has referred to the Department for Promotion of Industry and Internal Trade (DPIIT) guidelines issued on October 15, 2020, for restriction of investments from border sharing countries, mainly China.

The government last year had signed an MoU with the Chinese automobile company Great Wall Motors for investment in the state. The company had signed an agreement with General Motors to take over their plant at Talegaon in Pune district. The company will invest Rs 3,770 crore and provide jobs to 2,500. However, the company is still waiting for the Centre’s approval. The state government has sought clarification from the Centre whether the acquisition by Chinese companies is allowed or not.

In another case, Hengli, a Chinese company in the engineering sector has proposed to invest Rs 250 crore and it will provide jobs to close to 150 people in the state. ‘’The FDI remittance was received by the company before the release of the DPIIT guidelines. The company is seeking clarification with respect to their proposed investment in India,’’ said the state government in its presentation to NITI Aayog.

Further, the state government also sought clarification whether a joint venture/merger where one partner is Chinese is allowed.

Full report on www.freepressjournal.in

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