Renault-Nissan commitment to state doubtful, feels Tamil Nadu govt

Gross output VAT for sales within the state was 14.5% and the CST was 2% on interstate sale

Faster payment of incentives to Renault-Nissan Alliance India Pvt Ltd (RNAIPL) might result in the latter abandoning its project in the state, the government of Tamil Nadu is arguing before the high court here.

The court is looking into the dispute on alleged non-payment of incentives worth Rs 5,000 crore to the company. The bone of contention is a business model change the company implemented between 2012 and 2014; the state alleges this resulted in "unlawful gain" and boosted subsidies in the short term.

The revised model had one manufacturing company, RNAIPL, and two marketing companies, Renault India and Nissan