Tata Motors has got Gujarat cabinet clearance to take over Ford Motor Company’s passenger car manufacturing plant in Sanand near Ahmedabad, The Times of India reported.
Moneycontrol could not independently verify the news.
This comes after the plant had ceased operations in April.
An official was quoted as saying by ToI, “The companies are still in talks to work out the nitty-gritty of the deal size, labour issues, financials, and duties and benefits involved in the takeover. Once the two firms agree, a definitive agreement may be inked.”
The official added, “A formal ceremony for the MoU (memorandum of understanding) signing is being planned for May 30. The state has agreed to pass on all benefits offered to Ford to Tata Motors for the remaining period of the concession agreement.”
TOI’s sources confirmed that Tata Motors will manufacture electric vehicles at the plant after tweaking it.