New Delhi: The state government of Maharashtra has put on hold three agreements totalling over Rs 5,000 crore signed with Chinese companies at the recently held Magnetic Maharashtra 2.0 investor meet, according to a report in the Times of India.
“The decision has been taken in consultation with the Union government. These were signed prior (to the killing of 20 Indian soldiers on the Indo-China border). The ministry of external affairs has advised not to sign any further agreements with Chinese companies,” industry minister Subhash Desai said.
The decision to freeze Chinese projects and scrutinise investments from China has come against the backdrop of border clashes. At an all-party meeting, Maharashtra chief minister Uddhav Thackeray said, “India wants peace but that doesn’t mean we are weak. China’s nature is betrayal. India is mazboot not najboor (India is strong, not helpless),” he said.
The online conference of Magnetic Maharashtra 2.0 investor meet, held last Monday, had been attended by Chinese ambassador Sun Weidong.
The agreements included a Rs 3,770-crore memorandum of understanding (MoU) with Great Wall Motors (GWM) to set up an automobile plant near Pune. GWM planned to produce electric vehicles and SUV models at the unit in Talegaon near Pune. The managing director of the Indian subsidiary of GWM, Parker Shi, said in a statement that the plant would be “highly automated” with “advanced robotics technology integrated in many of the production processes”.
“Overall we are committed to USD 1 billion (Rs 7600 crore) of 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 3,000 people in a phased manner,” Shi said.
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In a joint venture with Foton (China), PMI Electro Mobility had announced a Rs 1,000-crore unit that was likely to create 1,500 jobs.
The investor meet was a part of the Maha Vikas Aghadi government’s attempt to stimulate the economy after the slump caused by the COVID-19-induced lockdown.
The state industry minister said that overall 12 agreements had been signed, which included companies from Singapore, South Korea, US in addition to several Indian companies. Desai also said the government was processing the other nine MoUs.
Additionally, Mumbai Metropolitan Region Development Authority (MMRDA) cancelled the bidding process for the design, manufacture, supply, testing and commissioning of 10 monorail rakes as both bids received were from two Chinese manufacturers – China Rail Road Corporation and Build Your Dream.
“In the current economic situation due to COVID-19 and in line with the various policies announced by the government of India to encourage the Make in India schemes, it has been decided to look for an Indian Technology partner for development and long term support,” R.A. Rajeev, metropolitan commissioner, said in the statement.
“It has been also decided to initiate the dialogue with Indian manufactures like BHEL, BEML, etc.,” the metropolitan commissioner said. “MMRDA does not want again to create a Scomi-like situation when it has to depend upon foreign manufacturers even for spare parts of monorail coaches. In the situation that the two Chinese companies are dictating us to change tender conditions, MMRDA administration has decided to search for technology partners in India and develop it in India. As we do not require large quantities, it is possible for Indian companies to manufacture and supply in less time.”
Against rising clamour to boycott Chinese products, several states across the country have taken to reviewing and cancelling contracts with Chinese companies.
Bihar chief minister Nitish Kumar at the all-party meeting called by PM Narendra Modi said that all previous trade agreements must be reviewed “to ensure that Chinese products are not used”. Bihar industry minister, Shyam Rajak, however, said that any foreign firm investing in the state had to get clearances from the Centre, according to a report in the Hindustan Times.
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Uttarakhand on Sunday also instructed its officials to list out all the Chinese companies which had been given government contracts. The spokesperson Uttarakhand government Madan Kaushik said that officials were directed to check whether the authorities in the state government have signed any contracts with Chinese authorities or companies in the past.
“The decision to ban Chinese companies can only be taken by the Centre. Why doesn’t the BJP government snap all trade relations with China? Moreover, no Chinese company has base in West Bengal,” said Dola Sen, a TMC Rajya Sabha MP and president of the TMC’s trade union wing.
