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.

ALSO READ – Ford Motor ceasing production in India leaves its workers high and dry

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.

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor