India’s revenge against China includes freezing a car manufacturing plant, an EV project, and a railway project

• The decision came after a violent clash between India and China at Galwan Valley in the past week.
• This includes a ₹3,770-crore MoU with the Great Wall Motors to set up an automobile manufacturing unit in Pune’ Talegaon and a ₹1,000-crore in partnership with Foton (China) and PMI Electro Mobility.
• Earlier the Indian Railways decided to terminate the contract worth ₹470 crore given to China for Dedicated Freight Corridor Corporation of India Limited (DFCCIL).

The Maharashtra government has put three major agreements with Chinese companies worth ₹5,000 crore on hold, amid anti-China sentiments. The decision came after a violent clash between India and China at Galwan Valley in the past week.

The agreements were the part of the 3 memorandums of understanding (MoU) signed by the Udhhav Thackeray-led government on June 17 at the online Magnetic Maharashtra 2.0 meet. “We have taken this decision in consultation with the central government. These agreements were signed prior to the development on the Indo-China border and killing of 20 Indian soldiers,” Industry Minister Subhash Desai said.

Desai added that the Ministry of External Affairs had advised the state government against signing any further agreements with Chinese companies.

What is Magnetic Maharashtra 2.0?

‘Magnetic Maharashtra 2.0’ is an attempt to revive the economy of the state post-COVID with interest from other countries like Russia, Japan, Germany and others in various sectors like engineering, automobiles, food processing, ESDM, IT, ITES, and others.

The signed agreements worth over ₹16,000 crore with global companies, including Chinese groups.

That includes a ₹3,770-crore MoU with the Great Wall Motors to set up an automobile manufacturing unit in Pune’ Talegaon and a ₹1,000-crore in partnership with Foton (China) and PMI Electro Mobility.

Besides, Henglu Engineering made a commitment of ₹250-crore for the expansion plans at its unit Phase II in Pune.

Apart from China, the state signed around nine other MoUs with companies from the US, South Korea, Singapore and various domestic entities, with huge employment generation potential.

Earlier the Indian Railways decided to terminate the contract worth ₹470 crore given to China for Dedicated Freight Corridor Corporation of India Limited (DFCCIL).

The contract was signed between the Railways and the Beijing National Railway Research & Design Institute of Signal & Communication in 2016.

However, the officials said the Chinese company was reluctant to furnish technical documents as per the contract and has not been able to provide authorised engineers at the site which was a serious constraint.

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