Nissan initiates arbitration to recover Rs 5,000 crore from govt

Tamil Nadu govt says efforts on for reconciliation

Japanese carmaker Nissan has sued the Tamil Nadu government in order to recover around Rs 5,000 crore ($770 million) of promised incentives along with interest charges and damages. Nissan Motor had initiated international arbitration proceedings to this effect after months of talks with the state government did not lead to a resolution, Reuters reported.

In a notice sent to Prime Minister Narendra Modi last year, Nissan sought payment of incentives from the Tamil Nadu government as part of a 2008 agreement to set up a manufacturing plant in the state. A state government official said efforts for reconciliation were on.

The agreement