Fast-track task force meeting progressive on Nokia plant revival

The Centre is positive about revival, it is now up to the state government to act now, says official

A meeting of the fast-track task force, formed by the Centre to revive the mobile manufacturing ecosystem, has discussed the issues related to the revival of the mobile handset manufacturing unit which was earlier run by Finnish electronics manufacturer Nokia, in Sriperumbudur, near Chennai. The discussion was productive and it may result in a positive outcome, if the state government also acts accordingly, said a source close to the development.

The meeting was very productive and Government of India is totally aligned with the requirements (of the revival plan), and it is now up to the Tamil Nadu government to measure up, said the source.

 

The task force might get to a direction on what is going to happen, within the next one or two weeks. The tax issues are expected to be kept aside and will not come in the way of revival plans.

A high-level team of the task force, headed by chairman Pankaj Mohindroo, the national president of Indian Cellular Association, has been set up to look at the issues related to revival of the mobile manufacturing ecosystem in the country and also into the issues with the earstwhile manufacturing plant of Nokia.

Earlier in August last year, the task forced requested the Tamil Nadu government to set up a similar committee of the state government to help restart the now- defunct Nokia plant at Sriperumpudur as well as to revive the electronic manufacturing ecosystem in the state.

The meeting scheduled later this week is a follow up of the earlier meeting.

It also asked the Tamil Nadu government to announce a package for the revival of Nokia plant as the state is the highest stakeholder in the issue.

Nokia, once an iconic mobile handset maker, in 2014 decided to shut down its plant at Sriperumbudur, near Chennai.

The company said it decided to stop production at its Chennai plant from November 1, 2014 in the absence of orders from its new parent firm (Microsoft), which terminated the mobile purchase agreement.

Global software major Microsoft bought out Finland-based Nokia's global devices and services business, including assets in India for $7.2 billion on April 25, 2015. The company decided to suspend manufacturing handsets from its Chennai plant though it could not take possession of it due to legal battles over a tax notice from the Tamil Nadu government and the Supreme Court. The government has put a freeze on Nokia's assets due to a tax dispute over an estimated Rs 23,000 crore.

Following this, the state government has also slapped a tax demand notice for around Rs 2,400 crore.

The factory employed around 8,000 people directly.