20/09/2021

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Tamil Nadu govt offers special incentives to attract buyers of Ford factory, Auto News, ET Auto

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Ford has in excess of the a long time invested about $2.5 billion in its Chennai and Sanand factories.

CHENNAI: In an endeavor to mitigate the discomfort arising out of the closure of the Ford manufacturing unit in Maraimalai Nagar, the federal government of Tamil Nadu is prepared to supply the same money benefits to any new investor in the asset as it would supply a producing entity placing up a greenfield plant in TN.

Given that the fiscal benefits are out there, if the expense in the point out is significant, the federal government will be prepared to supply these benefits to whoever buys the Ford manufacturing unit. Aside from this, the federal government will also enable and fast track all required approvals so that the sale goes through easily in an effort to deliver a speedy resolution to the problem.

The government’s determination to supply support to the sale procedure is pushed by the fact that the Maraimalainagar manufacturing unit employs about 2,000 people today who will be component of the people today-plant package that will be provided to the consumer. Ford has in excess of the a long time invested about $2.5 billion in its Chennai and Sanand factories. The 350 acre Maraimalai Nagar plant can make upto 200,000 automobiles and 340,000 engines a yr.

Following accumulating functioning losses of far more than $2 billion in excess of the previous 10 a long time and a $.8 billion non-functioning generate-down of belongings in 2019, Ford expects to history pre-tax special merchandise charges of about $2. billion, such as about $.6 billion in 2021, about $one.2 billion in 2022 and the stability in subsequent a long time.

The fiscal benefits provided by the federal government of Tamil Nadu to micro, small and medium enterprises contain a VAT subsidy for the initial 6 a long time of manufacturing, special capital subsidy of 15% on plant and machinery for thrust sector firms such as vehicle, 20% subsidy on power consumption for initial 36 months, 50% rebate on stamp duty and registration charges,15% plant and machinery price as subsidy for thrust sectors like vehicle and 3% of desire on time period financial loans for engineering upgradation and modernisation between other folks.

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The carmaker had introduced that it incurred a loss of Rs 15,000 crore in the 10 a long time and claimed it would wind up motor and motor vehicle assembling plants in Gujarat and Tamil Nadu.

The best administration explained to employees that it would speedily “ramp down” manufacturing of its preferred products produced in India, this kind of as Ford Figo, Ford Freestyle in India.

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