Essar pulls out of race to buy Nokia's Chennai mobile plant

Posted By: Gizbot Brueau

    Indian conglomerate Essar Group today said it is no longer interested in buying Nokia's Chennai mobile manufacturing unit.

    Essar pulls out of race to buy Nokia's Chennai mobile plant

    "In recent times there has been a spate of media reports on Essar acquiring Nokia's Chennai plant. Essar confirms that it is no longer pursuing the deal and therefore categorically denies the media speculation around this subject," Essar said in statement.

    Recommended: Nokia inks IT infra deal with HP, Microsoft and Telefonica

    A senior Tamil Nadu government official last month said Nokia has informed that it has identified a serious buyer and added that Essar chief Shashi Ruia was in Chennai to look at the plant.

    Essar pulls out of race to buy Nokia's Chennai mobile plant

    Nokia's Chennai plant is under freeze over an estimated Rs 10,000 crore tax dispute with the Income Tax department. Nokia has sought court's permission to sell the plant and keep the amount in escrow account till the matter is resolved but the I-T department has said that the amount that the company is offering is very little.

    Recommended: Facebook Inks Deal With Nokia to Power HERE Maps on Mobile

    The Delhi High Court has ordered to appoint consulting firm Ernst & Young India as valuer of the plant. On March 3 in Parliament, Prime Minister Narendra Modi has indicated that the Tamil Nadu-based Nokia plant, which shut down a few months ago, is likely to start functioning again.

    Essar pulls out of race to buy Nokia's Chennai mobile plant

    An inter-ministerial panel was set up in this regard which included Department of Revenue, Department of Industrial and Policy Promotion (DIPP) and Department of Electronics and IT. CBDT was part of the discussions. However, government is yet to resolve the issue.

    US software giant Microsoft acquired Nokia's mobile devices business for about USD 7.5 billion but kept the factory out of this deal due to tax dispute with Indian authorities.

    The factory continued making handset under contract from Microsoft for a year after which the US firm terminated the manufacturing agreement following which Nokia suspended operation at the plant from November 1, 2014.

    The mobile phone export from India crashed by 70 per cent to Rs 2,450 crore in 2014, from Rs 11,850 crore in 2013 due to production getting affected at Nokia's Chennai plant as per a report of Indian Cellular Association.

    Source: PTI

    Read More About: nokia mobile phones smartphones news

    Stay updated with latest technology news & gadget reviews - Gizbot

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Gizbot sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Gizbot website. However, you can change your cookie settings at any time. Learn more