Amid border tensions with China, India has frozen three investment projects worth $667 million made by Chinese companies in the Indian state of Maharashtra. The projects have been put on hold at the behest of the Indian Ministry of External Affairs.
The projects include a major automobile plant deal and an electro-mobility project.
“The decision has been taken in consultation with the Union government. These projects 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,” said Maharashtra’s Industry Minister Subhash Desai.
The stalled projects include a $502 million Memorandum of Understanding with Great Wall Motors (GWM) and a $133 million electro mobility project with Foton (China). GWM was to set up an automobile manufacturing unit in Talegaon, near the Indian city of Pune.
Investment contracts were signed with companies from the US, South Korea, and Singapore at the same meeting during which the Chinese agreements were signed.
A total of nine investment contracts were signed. The six contracts that don't involve China will go ahead and be implemented.
Earlier, India's largest trade body, the Confederation of All India Traders, had written to Maharashtra State chief Uddhav Thakarey to consider scrapping the agreements with the Chinese firms. CAIT has launched a programme to boycott Chinese products.
