Rumour: Nissan and Indian govt. to settle dues

Back in December 2017, we had reported that Nissan had sued India for pending dues worth Rs. 5,000 crore, including Rs. 2,900 crore as pending incentives and Rs. 2,100 crore as interest, damages and other costs. Now, a media report indicates that both parties are close to a settlement.

According to the proposal, Nissan will take a lower settlement amount of Rs 2,000 crore and agree to let go of the amount it had asked in damages. According to the deal, the state would pay Nissan Rs. 300 crore upfront with the remaining amount in 10 instalments by the end of 2019. The Japanese carmaker would also drop the arbitration case once the settlement is agreed.

According to a deal signed between the state of Tamil Nadu and Nissan in 2008, the Japanese carmaker would setup a manufacturing unit in lieu of incentives like tax refunds. In 2016, Nissan chairman Carlos Ghosn wrote to the Indian Prime Minister for his help. Despite this, the dues were pending, which prompted Nissan to seek arbitration.

This is not the only case against India. Apparently, there are over 20 such cases pending.

Source: Reuters