Gandhinagar: The way is clear for the automaker Tata Motors to take over Ford IndiaPassenger car manufacturing plant at Sanand near Ahmedabad. Earlier this week, Gujarat The cabinet approved a proposal submitted by both the companies to go ahead with the deal, top government officials confirmed. With the state’s nod, Tata Motors will also be able to avail enhanced benefits and incentives Wade When the plant was commissioned. Sources said that the cabinet has issued a no-objection certificate on the proposal of the companies.
Officials with knowledge of the development confirmed Tata Motors and Ford Motor Company Will sign MoU in presence of CM Bhupendra Patel on Monday.
Ford Motor Co. announced its exit from India operations late last year and its passenger vehicle manufacturing plant in Sanand ceased manufacturing operations by April this year.
In 2018, the state had constituted a High Powered Committee (HPC) under the chairmanship of the Chief Minister to try and resolve issues related to the execution of mega projects. Therefore, the two automobile giants submitted a proposal to HPC to take over Ford’s plant by Tata Motors.
“The Gujarat cabinet approval is only a green signal…the companies are still in talks to work out the specifics with regard to the size of the deal, labor issues, financials, and duties and benefits involved in the acquisition. Agreed, there can be a definite agreement between the two automakers,” said an official.
“A formal ceremony is being planned for the signing of the MoU on May 30, in which representatives of both the companies will be present. The state government is expected to pass on all benefits to Tata Motors to Ford for the remaining period of the concession agreement. has agreed to.” An official told TOI. Sources confirmed Tata Motors’ plan to manufacture electric vehicles at the new plant after making fresh investments to re-examine Ford’s existing infrastructure.
Officials with knowledge of the development confirmed Tata Motors and Ford Motor Company Will sign MoU in presence of CM Bhupendra Patel on Monday.
Ford Motor Co. announced its exit from India operations late last year and its passenger vehicle manufacturing plant in Sanand ceased manufacturing operations by April this year.
In 2018, the state had constituted a High Powered Committee (HPC) under the chairmanship of the Chief Minister to try and resolve issues related to the execution of mega projects. Therefore, the two automobile giants submitted a proposal to HPC to take over Ford’s plant by Tata Motors.
“The Gujarat cabinet approval is only a green signal…the companies are still in talks to work out the specifics with regard to the size of the deal, labor issues, financials, and duties and benefits involved in the acquisition. Agreed, there can be a definite agreement between the two automakers,” said an official.
“A formal ceremony is being planned for the signing of the MoU on May 30, in which representatives of both the companies will be present. The state government is expected to pass on all benefits to Tata Motors to Ford for the remaining period of the concession agreement. has agreed to.” An official told TOI. Sources confirmed Tata Motors’ plan to manufacture electric vehicles at the new plant after making fresh investments to re-examine Ford’s existing infrastructure.