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A tri-party MoU inked between GoG, Tata Passenger Electric Mobility Limited and Ford India Pvt. Ltd.

Vision of self-reliant India will come true through production of electric vehicles in Gujarat through Green Mobility

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Gandhinagar, Monday: A tri-party Memorandum of Understanding (MoU) was signed between the Government of Gujarat, Tata Passenger Electric Mobility Limited, a subsidiary of Tata Motors and Ford India Pvt. Ltd. in Gandhinagar in the presence of Gujarat Chief Minister Shri Bhupendra Patel.

This tri-party MoU have been signed following the Gujarat Government’s 2011 State Support Agreement with Ford India Pvt. Ltd. as well in context with its understanding with Tata Passenger Electric Mobility Ltd., a subsidiary of Tata Motors.

Accordingly, Tata Motors Ltd. will acquire all the land, building and vehicle assembly, along with plant machinery of Ford India Pvt Ltd’s Sanand plant. Not only that, all the employees of Ford India Pvt Ltd’s vehicle assembly plant will be incorporated in Tata Motors. Ford India Pvt. Ltd. will continue to produce engines at its Sanand plant and for this purpose Tata Motors will provide them land on lease.

Government of Gujarat will be supporting in providing all the necessary permissions as per rules as well will also assist in providing common facilities like water, electricity, effluent treatment plant to Tata Motors and Ford India.

As a result of Chief Minister Shri Bhupendra Patel’s visionary approach and quick decision making, this MoU has come true with the positive approach of the State Government in just a short span of 90 days.

It is worth to mention that, Tata Passenger Electric Mobility Ltd will acquire all the land, building, plant, machinery, Ford Vehicle Manufacturing Facility and incorporate all its employees of the Ford plant at Sanand.  With the signing of this MoU issues of unemployment will be addressed.

Production of electric vehicles will commence in Gujarat and Gujarat will be at the forefront in environment friendly green mobility initiatives.

With proposed acquisition of foreign company like Ford Motors by Indian company like Tata, Gujarat will step forward towards achieving the goal of Prime Minister Shri Narendra Bhai Modi of self-reliant India.

The Ford Motors plant provides 3043 direct employment opportunities and indirect employment opportunities to approximately 20,000 people. The closure of the plant would cause an estimated 25,000 job loss which was a matter of concern for the state government.

In addition, the ancillary units supplying spare parts to the plant will also be shut down and the employment of the workers working in it will also be adversely affected. This proposed acquisition will now also address this issue.

To realize the dream of Prime Minister Shri Narendrabhai Modi during his tenure as Chief Minister of Gujarat to make Gujarat an auto hub, under the Industrial Policy-2009, the state government announced assistance for mega / innovative projects. The state government entered into a state support agreement (SSA) with Ford Motors in 2011 under the mega / innovative scheme.

The plant was started by Ford Motors at Sanand taluka of Ahmedabad district. A total of 460 acres of land is covered, Vehicle Assembly Plant (350 acres) and Engine Plant (110 acres).

A formal proposal has been made to acquire the operation of Ford Company’s plant at Sanand by Tata Motors, subsidiary Tata Passenger Electric Mobility Ltd.

The proposed acquisition will also address the issue of unemployment among Ford India’s Sanand plant workers and provide employment opportunities to locals.

Additional Chief Secretary, Department of Industry, Dr. Rajiv Kumar Gupta, MD, Tata Motors, Shri Shailesh Chandra and Ford India’s Transformation Officer and Country Head Shri Balasundaram signed this tri-party memorandum of understanding.

Source: Information Department, Gujarat