As General Motors (GM) is scheduled to shut down its factory in Maharashtra, the facility's sale to China's Great Wall Motors is pending regulatory approval.
The sale of General Motors' plant at Talegaon has come under tighter scrutiny amid border tensions between India and China.
There are 1,800 salaried and hourly staff working at the factory that will close on December 24, according to a report by The Times of India.
GM will pay shop floor workers their salaries till January 25, the report said.
"Both the companies continue to work with all relevant authorities to secure necessary government approvals to support the transaction, which will deliver future jobs at the site," a spokesperson for GM India told the paper.
GM India said it will support the affected employees with separation packages and transition support. "We have made all relevant disclosures regarding investments in operations," the company added.
GM and Great Wall Motors had signed a binding term sheet in January 2020, and were schedule to complete the transaction in the second half of the year.
India increased scrutiny of investments from companies based in neighbouring countries, after military tensions escalated along the Line of Actual Control (LAC).
In June, 20 Indian soldiers died during a clash with Chinese soldiers at Galwan Valley in Ladakh.
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