Nis­san-In­dia fight near end

Irish Independent - Business Week - - Front Page -

NIS­SAN Mo­tors and au­thor­i­ties in an In­dian state are close to set­tling a dis­pute over which the Ja­panese car­maker ini­ti­ated in­ter­na­tional ar­bi­tra­tion seek­ing more than $729m (€624m) in un­paid dues and dam­ages, sources told Reuters.

Un­der the pro­posed set­tle­ment, Nis­san would take a lower pay­out of about 20 bil­lion ru­pees ($292m) in un­paid dues and forego sums it has sought in dam­ages, two sources aware of the mat­ter said.

The res­o­lu­tion would be a vic­tory for Prime Min­is­ter Naren­dra Modi, who faces a gen­eral elec­tion next year and has spent the last four years try­ing to trans­form In­dia’s im­age as a busi­ness­friendly na­tion. Nis­san sent a le­gal no­tice to the Modi gov­ern­ment in 2016 seek­ing pay­ment of in­cen­tives it said it was due from the gov­ern­ment of Tamil Nadu as part of a 2008 agree­ment to set up a car-man­u­fac­tur­ing plant in the south­ern state.

The car­maker, in its no­tice, had claimed 29 bil­lion ru­pees ($423m) in un­paid in­cen­tives and 21 bil­lion ru­pees ($306m) in dam­ages, plus in­ter­est and other costs. The Tamil Nadu gov­ern­ment has since paid some money and now owes Nis­san about 20 bil­lion ru­pees in un­paid in­cen­tives, one of the sources said.

Ac­cord­ing to the pro­posal the two sides are close to agree­ment on, the state would pay the au­tomaker three bil­lion ru­pees up­front once the deal was signed, with the re­main­der paid by the end of 2019, the sources said. Nis­san would drop the ar­bi­tra­tion case against In­dia once the set­tle­ment was agreed, the sources said. (Reuters)

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