Maharashtra goverment puts on hold 3 MoUs with Chinese companies

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Published on Jun 22, 2020 11:33 PM IST
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By, Mumbai

After the Galwan Valley standoff, the Maharashtra government has decided to put on hold the process to allow three Chinese companies to set up plants in the state.

State industries minister Subhash Desai said in a statement on Monday: “We have decided to put the memoranda of understanding (MoUs) signed with three Chinese firms worth 5,020 crore on hold. However, this doesn’t mean that they have been cancelled. We will wait for a clear policy from the Central government on this issue.”

On June 15, the state government signed 12 MoUs worth 16,300 crore with major global companies. Of them, MoUs worth over 5,000 crore were signed with three Chinese firms — Hengli (250 crore), Great Wall Motors (3,770 crore) and PMI Electro Mobility Solutions, a joint venture with Foton (1,000 crore). Soon, clashes were reported between Indian and Chinese troops at Galwan Valley in Ladakh, in which 20 Indian soldiers were killed.

Earlier, amid standoff, the Mumbai Metropolitan Region Development Authority (MMRDA) cancelled the bids to manufacture 10 monorail rakes received from two Chinese companies – CRRC Corporation Ltd and BYD Co Ltd. MMRDA on Saturday said the Chinese firms were constantly seeking revision in terms and conditions. “As the two Chinese companies are dictating us to change the tender conditions, MMRDA has decided to look for technology partners in India. As we do not require large quantities, it is possible for Indian firms to manufacture and supply [the coaches] in less time,” MMRDA metropolitan commissioner RA Rajeev said.

Six Chinese companies are involved in infrastructure projects in Mumbai with the 337-km Metro project, which has an estimated cost of 1 lakh crore. Of these, Shanghai Tunnel Engineering Co Ltd (STEC), China Railway Tunnel Group Co Ltd (CRTG) and Continental Engineering Corporation (CEC) are undertaking civil and tunnel works for Metro-3 (Colaba-Bandra-Seepz). The Mumbai Metro Rail Corporation (MMRC), which is building the fully underground Metro, has appointed the SJEC Corporation, a Chinese consortium, for system works.

CRTG in a joint venture with J Kumar Infraprojects Ltd, is also building parts of Metro-2A (Dahisar-DN Nagar) and Metro-6 (Swami Samarth Nagar-Vikhroli). Another Chinese company, China Harbour Engineering Company Ltd (CHEC), is building part of Metro-4 (Wadala-Kasarvadavali) in a joint venture with Tata Projects.

A senior MMRDA official said the involvement of the Chinese companies “stands as it is”. “So far, there is no advisory [against the involvement of Chinese companies],” said the official, on condition of anonymity.


    Faisal is with the political team and covers state administration and state politics. He also covers NCP.

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