Gujarat Cabinet Approves Tata Motors' Takeover of Sanand Plant
The deck for automaker Tata Motors to take over Ford India's passenger car manufacturing plant in Sanand, near Ahmedabad, is clear. Earlier this week, senior government officials confirmed that the Gujarat Cabinet approved the proposal the two companies had proposed to boost the deal.
The state green signal also allows Tata Motors to benefit from the profits and incentives given to Ford when the plant goes live. The Cabinet has submitted a clean health bill to the company's proposal, sources added.
Officials within the development confirmed that Tata Motors and Ford Motor Company will sign a memorandum of understanding on Monday in front of CM Bhupendra Patel.
Ford Motor Company announced its exit from India at the end of operations late last year, and the Sanand passenger car manufacturing plant stopped production by April this year.
In 2018, the state established a High-powered Commission (HPC) chaired by the Prime Minister to address and resolve issues related to the implementation of large-scale projects. Therefore, the two-car giants have submitted to HPC a proposal for Tata Motors to acquire the Ford plant.