+
GM India's Talegaon plant closure conditionally approved by Maha govt
ECONOMY & POLICY

GM India's Talegaon plant closure conditionally approved by Maha govt

General Motors India announced that it had received approval from the Maharashtra Government for the closure of its Talegaon plant. The move was seen as a positive step towards resolving the ongoing dispute with the union and establishing a commercial agreement with Hyundai Motor India. However, despite this development, General Motors' exit from India is still far from complete. The approval was granted under specific conditions, which included providing a separation package, obtaining a no objection certificate from various agencies, and sharing job-related information about the workers with Hyundai Motor India.

On March 13 of this year, Hyundai Motor India signed a term sheet with General Motors for a potential acquisition of the Talegaon facility. The final deal is dependent on meeting certain conditions, including obtaining regulatory approvals from relevant government authorities and all stakeholders involved in the acquisition.

Interestingly, the approval was granted while the General Motors Employee Union and the company were still engaged in a lengthy legal dispute. The workers claimed that their terminations were illegal following the company's decision to exit the country. Legal battles have been on-going since 2021. General Motors initially applied for plant closure on November 20, 2020, and later submitted a fresh application on June 27 of this year, citing excessive delays.

A spokesperson from General Motors expressed gratitude for the approval of the closure application and acknowledged the support received from the Government of Maharashtra throughout the years. However, the president of the GM Union, Sandeep Bheghade, stated that the union would seek legal advice on the matter and refrained from providing immediate comments.

According to the approval, a settlement package will be provided to affected employees, which includes 110 days of wages per year of service. The GM spokesperson mentioned that impacted employees had already received statutory benefits and encouraged them to come forward and accept the remaining portion of the separation package.

The approval was outlined in a six-page order issued by Suresh Dagadu Khade, the Minister of Labour for Maharashtra State, on July 5. The order was in response to General Motors India's application filed on June 27, seeking permission to close the plant. In its application, General Motors stated that the plant could not be made functional under any circumstances due to significant losses. The company reported a loss of over Rs 90 billion between 1994 and 2022. As a result, the government granted permission for closure, subject to specific conditions.

As per the conditions stated in the order, the remaining workers will receive the same package as their former colleagues, and General Motors is required to settle all outstanding dues within the next 60 days. The company must also obtain a no-objection certificate, a no-dues certificate, and other necessary permissions from relevant agencies as mandated by the law. Lastly, the order stipulates that the "applicant may provide job details of the workers to new incumbents."

Also read:
Hild Electric bags NTPC order for alkaline electrolysers
FIVE becomes first hotel to obtain i-RECs in UAE


General Motors India announced that it had received approval from the Maharashtra Government for the closure of its Talegaon plant. The move was seen as a positive step towards resolving the ongoing dispute with the union and establishing a commercial agreement with Hyundai Motor India. However, despite this development, General Motors' exit from India is still far from complete. The approval was granted under specific conditions, which included providing a separation package, obtaining a no objection certificate from various agencies, and sharing job-related information about the workers with Hyundai Motor India. On March 13 of this year, Hyundai Motor India signed a term sheet with General Motors for a potential acquisition of the Talegaon facility. The final deal is dependent on meeting certain conditions, including obtaining regulatory approvals from relevant government authorities and all stakeholders involved in the acquisition. Interestingly, the approval was granted while the General Motors Employee Union and the company were still engaged in a lengthy legal dispute. The workers claimed that their terminations were illegal following the company's decision to exit the country. Legal battles have been on-going since 2021. General Motors initially applied for plant closure on November 20, 2020, and later submitted a fresh application on June 27 of this year, citing excessive delays. A spokesperson from General Motors expressed gratitude for the approval of the closure application and acknowledged the support received from the Government of Maharashtra throughout the years. However, the president of the GM Union, Sandeep Bheghade, stated that the union would seek legal advice on the matter and refrained from providing immediate comments. According to the approval, a settlement package will be provided to affected employees, which includes 110 days of wages per year of service. The GM spokesperson mentioned that impacted employees had already received statutory benefits and encouraged them to come forward and accept the remaining portion of the separation package. The approval was outlined in a six-page order issued by Suresh Dagadu Khade, the Minister of Labour for Maharashtra State, on July 5. The order was in response to General Motors India's application filed on June 27, seeking permission to close the plant. In its application, General Motors stated that the plant could not be made functional under any circumstances due to significant losses. The company reported a loss of over Rs 90 billion between 1994 and 2022. As a result, the government granted permission for closure, subject to specific conditions. As per the conditions stated in the order, the remaining workers will receive the same package as their former colleagues, and General Motors is required to settle all outstanding dues within the next 60 days. The company must also obtain a no-objection certificate, a no-dues certificate, and other necessary permissions from relevant agencies as mandated by the law. Lastly, the order stipulates that the applicant may provide job details of the workers to new incumbents. Also read: Hild Electric bags NTPC order for alkaline electrolysers FIVE becomes first hotel to obtain i-RECs in UAE

Next Story
Resources

CASE Launches ‘Shilpi’ to Train Youth in Equipment Servicing

CASE Construction Equipment, a CNH brand, has launched Project Shilpi, a CSR initiative to train youth in backhoe loader maintenance and servicing. The programme targets ITI and diploma holders from economically weaker sections, aiming to address the skill gap in the construction equipment servicing sector.  “At CASE, we believe in enabling communities through skills that transform lives... Through this initiative, we aim to strengthen India’s technical workforce while empowering individuals to achieve socio-economic independence,” said Kavita Sah, India CSR Head, CNH. &nb..

Next Story
Resources

Himadri Named CDP Supplier Engagement Leader with ‘A’ Rating

Himadri Speciality Chemical has been recognised as a 2024 CDP Supplier Engagement Leader, earning an ‘A’ rating for its performance in supply chain climate action. This places Himadri among the top-rated global companies in the CDP’s Supplier Engagement Assessment. The company scored high in key categories including supplier engagement, Scope 3 emissions verification, risk management, and governance, demonstrating strong alignment with global climate disclosure frameworks. “Being recognised as a CDP Supplier Engagement Leader is a proud moment for all of us... Our commitment ..

Next Story
Resources

Trimble, IIT Madras Join Hands to Donate 20 Custom Wheelchairs

Trimble has partnered with the National Centre for Assistive Health Technologies (NCAHT) at IIT Madras to support inclusive mobility through the donation of 20 custom-fitted wheelchairs. Backed by an initial ₹15 lakh contribution, the lightweight (9 kg) wheelchairs are tailored to individual needs and rival high-end imports in quality. Recipients will be selected through a structured process including assessments, prescription, and training to ensure long-term usability. “At Trimble, we believe accessibility is fundamental... Through this partnership with IIT Madras, we hope to s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?