Nissan Motor Co has agreed to settle a long-running dispute with TN after claiming it was owed Rs 5,000 cr ($660 million) in unpaid dues and damages, six sources told Reuters.
TN industries minister M C Sampath confirmed to Reuters that the state had resolved the issue with Nissan but declined to give the settlement amount, citing confidentiality. “Nissan has begun the process to withdraw the international arbitration,” he said. Sampath said the payout would not affect the state’s finances at a time when it is dealing with the coronavirus crisis. The payment will be made from a separate fund of Rs 2500 cr which the state has allocated for auto sector incentives, he said.
The full terms of the settlement were not immediately clear and Reuters could not independently verify them.