Maharashtra govt signs Rs 16,000-crore investment pacts with 12 firms

UPL, Great Wall Motors, ExxonMobil among companies planning to invest in state

Uddhav Thackeray, Aditya, Shiv Sena — Maharashtra Chief Minister Uddhav Thackeray (right) has assured to offer all assistance to new investors. The agreements are expected to help spur economic activities in the state, which is worst-hit in India by the Covid-19 pandemic.

2 min read Last Updated : Jun 16 2020 | 2:11 AM IST

The Maharashtra government on Monday announced the signing of memoranda of understanding (MoUs) with 12 domestic and foreign companies for Rs 16,000 crore investment in the oil, chemicals, auto, electric mobility, and logistics sectors.

The agreements, part of the Magnetic Maharashtra initiative, are expected to help spur economic activities in the state reeling from the Covid-19 pandemic. The crisis has led to a sharp drop in the state’s revenues and led to an exodus of migrant labourers.

To revive the state's economy, the government has been planning several initiatives, including fast-tracking approvals to new investors. “We will offer all assistance to new investors,” said Chief Minister Uddhav Thackeray on the occasion.

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In the agreement with the government, UPL promised to invest Rs 5,000 crore in five years to manufacture pesticide ingredients in the Raigad district. Great Wall Motors, which recently acquired General Motors' plant in Pune, will invest Rs 3,770 crore.

PMI Electro Mobility Solutions and Foton Motors of China signed MOUs for Rs 1000 crore investment for manufacturing electric vehicles in Pune.

ExxonMobil has agreed to invest Rs 760 crore to manufacture lubricants, while Varun Beverages would put in Rs 820 crore, the government announced.

Land has been allotted to nine of the 12 companies, which had been in talks with the Maharashtra Industrial Development Corporation for the last six months.

“Three more investment projects in the steel, pulp and paper, and electronic system design sectors are in the pipeline. These would entail investments of another Rs 8000 crore. We hope to finalise them soon,” said B Venugopal Reddy, principal secretary, industries department of the state government.

“We expect the investment to materialise, and manufacturing to commence in two years,” said Bhushan Gagrani, principal secretary, the Chief Minister's Office.