Insta
Nissan is a Japanese automaker. (Robert Cianflone via Getty Images)
Japanese carmaker Nissan has begun international arbitration against India to recover dues amounting to Rs 5,000 crore after multiple failed appeals to state and national government, as reported by Reuters.
The dispute stems from unpaid state incentives by the Tamil Nadu government in the form of tax refunds among others. The company had setup a car manufacturing plant in Chennai in 2008 under an agreement with the then DMK government and invested Rs 61 billion towards the same over the next seven years.
The company was due to receive the incentives in 2015, and has stated that non-payment had led to ‘significant and increasing’ losses for the company. The carmaker has claimed Rs 2,900 crore in incentives and Rs 2,100 in damages along with interest and other costs in it’s notice.
A senior state official has admitted that there is no discrepancy with respect to the amount due, and that the government hoped to resolve the issue without international arbitration. However, the current legal notice follows several meetings between federal and state officials and Nissan executives which failed to yield any result.
A Nissan spokesman said the company was “committed to working with the government of India toward a resolution”.
Introducing ElectionsHQ + 50 Ground Reports Project
The 2024 elections might seem easy to guess, but there are some important questions that shouldn't be missed.
Do freebies still sway voters? Do people prioritise infrastructure when voting? How will Punjab vote?
The answers to these questions provide great insights into where we, as a country, are headed in the years to come.
Swarajya is starting a project with an aim to do 50 solid ground stories and a smart commentary service on WhatsApp, a one-of-a-kind. We'd love your support during this election season.
Click below to contribute.
Latest