Essar not in race to buy Nokia’s Chennai plant

 

 The Essar Group has pulled out of race to buy Nokia’s facility at Sriperumbudur.

In a statement on Thursday the company said, “Essar confirms that it is no longer pursuing the deal and therefore categorically denies the media speculation around this subject.”

  The plant which was frozen by the Income Tax department after a Rs. 21,000 crore tax dispute saw a ray of hope after Essar Group evinced interest in this facility.

In April this year, Essar Group Chairman, Shashi Ruia, who was here in Chennai had also hinted that they were evaluating the handset plant. It has been more than seven months since Nokia pulled its shutters down.

Officials hopeful

But government officials in Tamil Nadu are still hopeful.

“You can’t write off Nokia just because of this episode. If any product is up for sale there will be several people in race to buy and some may like it and some may back out. That does not mean the plant would be orphaned,” said a state government official who wished anonymity.  

  “We will not wash our hands of the Nokia issue. We are trying our best and there are people who are keen in using this plant,” he added. In March, Prime Minister Narendra Modi indicated that Nokia plant was likely to start operations again. 

The Chennai plant was set up in 2006 and was the largest handset manufacturing facility.

During its peak the plant employed over 9,000 employees, 55 per cent of them being

women.

Tax dispute

In 2014, Microsoft acquired Nokia in a $7.5 billion deal but kept the Chennai plant away due to the tax dispute.

In March, Prime Minister Narendra Modi indicated that Nokia plant is likely to start operations again