Nissan settles Rs. 5,000 crore dispute with Tamil Nadu Govt.

Nissan has settled its long standing dispute with the Tamil Nadu government over unpaid dues for an undisclosed amount.

The dispute was over incentives mentioned in an agreement made in 2008 between the two parties for Nissan to set up its manufacturing plant in the state. Nissan had claimed that it was owed Rs. 50 billion in unpaid dues and damages. In 2016, the company had initiated an arbitration against India claiming Rs. 21 billion in unpaid dues and Rs. 29 billion in damages and other costs.

According to media reports, Nissan is expected to receive Rs. 14 billion and Rs. 18 billion in settlement and has begun the process to withdraw the international arbitration.

Nissan's manufacturing plant is located on the outskirts of Chennai. The carmaker has invested Rs. 61 billion into the facility which has an annual capacity of 4,80,000 units.

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