Just days after signing an MoU with Great Wall Motor, the Maharashtra government is reportedly trying to stall the proposed $500mn investment by the company in the state due to the growing anti-China sentiment in the country.
The recent development comes in the wake of a deadly border clash between soldiers of India and China. The clash has led to several Indian citizens raising voice to boycott Chinese products and end trade with the country.
Along with Great Wall Motor, the Maharashtra government is also putting on hold two other major projects by Chinese firms. The total investment proposed by these projects stands at about ₹50bn ($658mn), including Great Wall Motor investment. The government recently made the announcement regarding the stay on these projects.
The initial agreements are not canceled, but further action is awaited, said Maharashtra’s industries minister Subhash Desai, days after the government signed them.
“In the current environment, we will wait for the federal government to announce a clear policy regarding these projects,” Desai said in a statement.
Great Wall, which has plans to invest a total of $1 billion in India, did not immediately respond to requests for comment.
One of the biggest sellers of SUVs in China, Great Wall made its debut in India at the country’s biennial auto show in February, amid much fanfare. The company, earlier in January, said that it had agreed to buy U.S. automaker General Motors’ car plant in Talegaon in Maharashtra state, and the deal was expected to be completed by the second half of 2020.
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