After 20 Indian soldiers died in a clash with Chinese troops along the Line of Actual Control (LAC) in Ladakh last week, relationship between the neighbours have been tense
The Maharashtra government has put Rs 5,020 crore worth investments from Chinese companies ‘on hold’ as it awaits the Centre’s policy on China-based investors.
While there were initial reports that the investments have been cancelled, state industries minister Subhash Desai clarified that there is “no decision to scrap the agreements.”
Informal discussions between the state and the Centre to determine its future course are on, and there is no advisory on suspending Chinese projects, a source told the Business Standard, adding: “We may go slow in attracting fresh investments from China.”
Moneycontrol could not independently verify the report.
Maharashtra has actively courted investors keen to dilute interests in China after the coronavirus pandemic exposed dangers of over dependence on a single large source and had signed multiple memorandums of understanding worth Rs 16,000 crore with companies across sectors.
Among these are three Chinese companies – Great Wall Motors (auto sector – Rs 3,770 crore), PMI Electro Mobility Solutions and Foton (electric mobility – Rs 1,000 crore) and Hengli Engineering (engineering – Rs 250 crore).
After 20 Indian soldiers died in a clash with Chinese troops along the Line of Actual Control (LAC) in Ladakh last week, relationship between the neighbours have been tense.
Maharashtra may still want to tread cautiously as it is expecting another fresh round of investments worth Rs 8,000 crore across sectors in the near future.WEBINAR: Tune in to find out how term insurance can provide risk protection during tough times. Register Now!
