Rumour: Renault-Nissan to invest Rs. 4,200 crore more in TN

The Renault-Nissan Alliance could make fresh investments of Rs. 4,200 in Tamil Nadu. The company had differences with the government over the quantum value added tax and central sales tax refunds. These issues are reported to have been resolved and the two parties are expected to sign a memorandum of understanding for the additional investment.

According to a government official, out of the assimilated arrears of Rs. 1,900 crore, Rs. 600 crore have been released and more will be paid over the coming months.

The Tamil Nadu government will host a Global Investors Meet on September 9 and 10, 2015. Renault-Nissan has revealed that it is in talks with the government, but has not disclosed any details about the investment.

Renault-Nissan has invested around Rs. 4,500 in the state of Tamil Nadu since 2008. The company has a facility in Oragadam, which is spread over an area of 640 acres.

The factory manufactures a range of vehicles including hatchbacks, sedans, MPVs and SUVs. The Renault Duster and Nissan Terrano have been its strongest sellers in the domestic market. However, dwindling sales has forced the factory to cut production by 50% (click here to read report).

Source: Economic Times