Mumbai: The Maharashtra Government on Monday faced a major embarrassment as it had to clarify that three MoUs involving an investment of Rs 5,020 crore, signed with Chinese companies, have been put on hold and not scrapped, as claimed in a section of the media.
The clarification became necessary after Industry Minister Subhash Desai, while speaking to an English daily, unilaterally announced that the decision was taken in consultation with the Union Ministry of External Affairs.
However, Desai’s announcement exposed the chinks in the Maha Vikas Aghadi government, as the Chief Minister’s Office, the Department of Industry and the Maharashtra Industrial Development Corporation were in the dark about the so-called scrapping of the MOUs till they read a report in the English daily.
Despite repeated attempts, Desai did not respond to telephone calls. However, the Department of Industry was forced to issue a press release.
‘’The MoUs signed on June 15 with three Chinese companies have been placed on hold (as is where is) by the state government. Status quo will be maintained on the MoUs for the moment. This does not mean that they have been rescinded or cancelled. In fact, further developments on the same are awaited,’’ the Department said.
The Department further stated, ‘’The Maharashtra Government is awaiting clear policy directions from the Union Government on these three projects collectively worth Rs 5,020 crore in the wake of the currently changed environment.’’
However, the clarification raised many questions. An officer in the chief minister's office told the FPJ, ''The CMO was not aware of these MoUs had been put on hold till the news appeared in a newspaper. There has been no formal communication from the Centre and from the Union Ministry of External Affairs. Besides, there has been no decision at the state government level to ban or not to entertain Chinese investments.’’
He further said the proposed investments by the three Chinese companies were not in the strategic and highly sensitive security related sectors. They will invest in auto, e mobility and other sectors.
Industry Department and MIDC officers fear that these companies may withdraw from Maharashtra and opt for other competing states, including Gujarat, Karnataka, Madhya Pradesh and Andhra Pradesh. '‘It is quite surprising how the Minister can make such an important statement when the government has shortlisted nearly 2,500 companies from China, US, UK, Taiwan, Singapore and South Korea to attract investments post Covid 19. The government’s switch-on, switch-off policy may adversely impact sentiments among investors,’’ said a senior officer.
