Production of electric vehicles in Gujarat will make India self-reliant through green mobility
Gujarat Government-Tripartite Memorandum of Understanding between Tata Passenger Electric Mobility and Ford India
A tripartite 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 Chief Minister Shri Bhupendra Patel.
The tripartite memorandum of understanding is in line with the Gujarat government’s pursuit of the State Support Agreement with Ford India Pvt Ltd in 2011 and an agreement reached between Tata Passenger Electric Mobility Limited, a subsidiary of Tata Motors.
Accordingly, the Sanand plant of Tata Motors Ltd. Ford India Pvt. Ltd. will acquire all the land, building and vehicle assembly, along with the plant machinery.
Not only that, all the employees of Ford India Pvt Ltd’s vehicle assembly plant will be included in Tata Motors. Ford India Pvt. Engine production at the plant at Sanand will continue and for this purpose Tata Motors will provide them land on lease.
The Government of Gujarat will be helpful for the necessary permissions as per rules. In addition, common facilities like water, electricity, effluent treatment plant will also be used by 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 in just a short span of 30 days with the positive approach of the State Government.
It is pertinent to mention here that Tata Passenger Electric Mobility Ltd. Ford will accept all land, building, plant of Ford Vehicle Manufacturing Facility, machinery and all its employees at Sanand.
The proposed acquisition would also address the issue of massive unemployment. Production of electric vehicles will start in Gujarat and Gujarat will be at the forefront of environment friendly green mobility initiatives.
With the proposed acquisition of a foreign company like Ford Motors by an Indian company like Tata, Gujarat will take one more step towards achieving Prime Minister Shri Narendra Bhai Modi’s goal of a self-reliant India. The Ford Motors plant employs 305 direct workers and approximately 30,000 indirect workers.
The closure of the plant has caused an estimated 5,000 jobs to be lost, which is 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. The proposed acquisition will now address the issue.
It may be mentioned here that Prime Minister Shri Narendrabhai Modi, during his tenure as the Chief Minister of Gujarat, under the Industrial Policy-2006, announced the state government to support mega / innovative projects to make Gujarat an auto hub. 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. Vehicle assembly plant (40 acre) and engine plant (110 acre) have come under the area in total 20 acres of land. Tata Motors, its subsidiary Tata Passenger Electric Mobility Ltd, has formally proposed to acquire Ford Company’s plant at Sanand.
The proposed acquisition will also address the issue of unemployment among Ford India’s Sanand plant workers and provide employment opportunities to locals. A tripartite MoU in this regard was signed in the presence of Chief Minister Shri Bhupendra Patel.
Additional Chief Secretary of the Department of Industry Dr. on this tripartite MoU. Rajiv Kumar Gupta, Shailesh Chandra, MD, Tata Motors, and Balasundaram, Ford India’s Transformation Officer and Country Head.