Shock to Chinese companies| Maharashtra government bans agreements worth Rs 5000 crore

Shock to Chinese companies| Maharashtra government bans agreements worth Rs 5000 crore

Shock to Chinese Companies

There is anger across China after 20 army personnel were martyred in the violent clash between India and China in the Galvan Valley of Ladakh. People are boycotting Chinese goods. The government is also ending its agreement with Chinese companies as far as possible.

In this series, the Mahavikas Aghadi government in Maharashtra has halted project agreements of about Rs 5,000 crore with three Chinese companies. The Maharashtra government had signed three agreements with Chinese companies at the recent ‘Magnetic Maharashtra 2.0’ investor conference. However, it has now been put on hold in view of the situation arising out of the border dispute.

Industries Minister Subhash Desai said that the decision has been taken after consulting the central government. These agreements were made earlier (before 20 soldiers were martyred along the India-China border). Desai said that the Ministry of External Affairs has advised not to sign any further agreements with Chinese companies.

Shock to Chinese companies| Maharashtra government bans agreements worth Rs 5000 crore
No To China

An online conference was held last Monday, which was also attended by Chinese Ambassador Sun Weidong. These three agreements included an MoU worth Rs 3,770 crore with Great Wall Motors (GWM) to set up an automobile plant at Talegaon near Pune.

The government-issued press release said that PMI Electro Mobility in a joint venture with Photon (China) announced the setting up of a unit of Rs 1,000 crore, which would create 1,500 jobs.

Among other Chinese companies, there was a Hengy engineering company, which was about to expand its second phase with an investment of Rs 250 crore in the Talegaon project. It was said on behalf of the company that this project will create 150 jobs.

The ‘Magnetic Maharashtra 2.0‘ was organized as a step to restart the economy following the situation arising from the corona virus. During this period 12 agreements were signed, including agreements with Singapore, South Korea, USA and many Indian companies.

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