News ID: 205330
Published: 1137 GMT December 01, 2017

Nissan to seek around $770m from India’s government

Nissan to seek around $770m from India’s government
hehindu.com

Japanese carmaker Nissan is set to become the latest foreign company to pursue international arbitration against India’s government, after losing patience over an investment incentive payment from a state government.

According to two people with direct knowledge of the situation, Nissan’s planned action relates to a 2008 agreement with the government of southern Tamil Nadu state, which led to its opening of a large car plant near Chennai two years later, ft.com wrote.

Nissan believes that the agreement entitled it to about $770 million in incentive payouts from the state government, but after two years of failed entreaties to both state and national administrations — including a personal appeal to Prime Minister Narendra Modi — the company is now planning to pursue international arbitration. Its decision was first reported by Reuters.

Other companies pursuing international arbitration against India include UK-based Vodafone and Cairn Energy.

   
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