The Gujarat cabinet gave its green signal for Tata Motors to take over Ford India’s passenger car manufacturing plant in Sanand near Ahmedabad.
With the state’s green signal, Tata Motors will also be able to reap the benefits and incentives extended to Ford at the time of launch of its plant. The cabinet has issued a no objection certificate to the companies’ proposal, sources said. Ford Motors announced its exit from India operations and shuts its Sanand plant in April this year.
In 2018, the state had formed a high power committee (HPC) to resolve issues pertaining to execution of large projects. The two automobile giants therefore, had submitted a consented proposal for Tata Motors’ takeover of Ford’s plant, before the HPC. “The Gujarat cabinet’s approval is only a green signal to the two firms to take the deal forward,” said a source.
Sources confirmed that the two companies will sign a memorandum of understanding in presence of CM Bhupendra Patel. The state government has agreed to pass on all the benefits offered to Ford motors to Tata Motors for the remaining period of the concession agreement,” a source said.
Tata Motors plans to manufacture electric vehicles at the new plant.
