Gujarat cabinet nod for Tata Motors’ takeover of Ford India’s Sanand plant
In a nod to Tata Motors’ takeover of Ford India’s passenger car manufacturing plant in Sanand, the Gujarat government’s cabinet has issued a no-objection certificate to the former’s proposal.
“The cabinet has issued a no-objection certificate to the takeover. It is now up to the companies to work out the nitty gritties,” a senior government official told Business Standard.
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According to the official, Tata Motors would continue to enjoy the incentives that were extended to Ford India.
A source in Tata Motors too confirmed the nod from Gujarat cabinet. A Tata Motors spokesperson declined to comment.
Now, Tata Motors is likely to sign a memorandum of understanding (MoU) for the same with Ford Motor Company after working out issues pertaining to the plant including labour issues and financials.
Tata Group had been meeting state governments of Gujarat and Tamil Nadu for a potential take over of Ford India’s plants in the two states, after the latter had announced its exit from India last year.
The Sanand plant has around 2,500 permanent workers, including nearly 900 union workers, mostly on the shop floor. After discontinuing passenger cars, workers at Sanand plant were engaged in manufacturing spare parts for Ford cars, apart from engines.
However, the company had set an internal deadline for the car plant till March 2022 for manufacturing spare parts used for replacement under warranty.
Last year, Ford was in talks with companies like Ola and Mahindra & Mahindra for contract manufacturing or for the sale of both factories, the failure of which led to the closure announcement.
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