Three serious investors have shown interest on buying the Nokia factory near Chennai, which was freezed by Income Tax department on the alleged Rs 21,000 crore income tax dispute, according to senior official from the State Government. The three names include Essar Group.
However, fate of the plant, at Sriperumbudur, near Chennai, continues to remain in the hands of the Department and with the Delhi High Court.
"The ball is in the court of Income Tax department and if they can convince the Delhi High Court and allow defreezing of Nokia's plant, the company can sell its assets and make part payment towards income tax arrears. There are two to three buyers to take over the Nokia plant," C V Sankar, additional chief secretary, Industries Department, government of Tamil Nadu said.
He was in Bengalaru for a roadshow on the upcoming Global Investors Meet (GIM), organised by Tamil Nadu Government on May 23 and 24.
"Authorities (IT Department) are sticking on their stand demanding a guarantee of up to Rs 3,500 crore over an ongoing dispute. The company is trying to get its assets defreezed by the court so that it can sell its assets and make part payment towards the tax arrears" said Sankar, who confirmed that Essar Group was in the race to take over the plant, located around 45 kms from Chennai city.
The plant, which was once largest and the most cost effective for Nokia, also received interest from two more investors, said Sankar.
"Apart from Essar, a couple of other companies have shown interest to take over the plant. Nokia has told us that they have a very serious investor to take over the plant. They have not disclosed the name of the investor and they will divulge the details only if the Delhi High Court defreezes their assets. So, it all depends on how quick Income Tax Department agrees," Sankar said.
It may be noted, apart from Income Tax Department's claim, Tamil Nadu also slapped notice asking the company to pay Rs 912 crore and Rs 600 crore as penalty. Because of the dispute, Nokia could not transfer the plant to Microsoft, which bought Nokia's device business, and Nokia suspended operations in the plant last November and it resulted in the loss of employment for around 30,000 people.
"If the IT Department agrees and the Court defreezes their assets, Nokia is ready to sell their plant and deposit the amount in a separate account and the money can be adjusted once the tax matter is decided by the court. Now, the prime minister has assured of reviving the plant. We hope some solution will come out very soon," Sankar said.
Nokia plant was set up in 2005 with about Rs 500 crore investment. At the peak of its operations, the plant produced 16 million handsets per month. The plant and machinery are in good condition and any new investors can start manufacturing from the day one of its acquisition, Sankar added.
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