In a nod to Tata Motors’ takeover of Ford India’s passenger automotive manufacturing plant in Sanand, the Gujarat authorities’s cabinet has issued a no-objection certificates to the previous’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 authorities official instructed Business Standard.
According to the official, Tata Motors would proceed to benefit from the incentives that have been prolonged to Ford India.
A supply in Tata Motors too confirmed the nod from Gujarat cabinet. A Tata Motors spokesperson declined to remark.
Now, Tata Motors is more likely to signal a memorandum of understanding (MoU) for the identical with Ford Motor Company after understanding points pertaining to the plant together with labour points and financials.
Tata Group had been assembly state governments of Gujarat and Tamil Nadu for a possible take over of Ford India’s vegetation within the two states, after the latter had introduced its exit from India final yr.
The Sanand plant has round 2,500 everlasting employees, together with practically 900 union employees, totally on the store flooring. After discontinuing passenger automobiles, employees at Sanand plant have been engaged in manufacturing spare elements for Ford automobiles, other than engines.
However, the corporate had set an inside deadline for the automotive plant until March 2022 for manufacturing spare elements used for alternative below guarantee.
Last yr, Ford was in talks with firms like Ola and Mahindra & Mahindra for contract manufacturing or for the sale of each factories, the failure of which led to the closure announcement.