Galwan standoff fallout | Maharashtra government puts on hold 3 MoUs with Chinese companies worth Rs 5,000 crore

The Maharashtra government has put three memorandums of understanding (MoUs) with Chinese companies worth Rs 5,000 crore on hold following the Galwan Valley clash, sources told CNBC-TV18.

The decision came after the central government sought details about Chinese investments as well as import-export trade from state governments.

The three MoUs that have been put on hold are with Great Wall Motors (worth Rs 3,700 crore), PMI Electro Mobility Solutions (Rs 1,000 crore) and Hengli (Rs 250 crore). They were signed during the Magnetic Maharashtra 2.0 initiative undertaken recently. All the three Chinese firms were to invest in Maharashtra's Talegaon district.

Also read: Magnetic Maharashtra | Great Wall Motors, ExxonMobil, 10 others agree to invest Rs 16,000 crore in state

The Maharashtra government will wait for the Centre to formulate an investment policy before taking a call on Chinese MoUs, sources added.

Sources at Great Wall Motors told CNBC-TV18 that the company has not received any official communication from the Maharashtra government about the MoU being put on hold.

They said that the company continues to watch the developments and that it "remains committed to kick-starting production and going ahead with its first car launch in 2021."

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Source: CNBC-TV18