Government Will Look Into Nokia’s Chennai Plant Issue: Nirmala Sitharaman

Following handset maker Nokia’s announcement to suspend operations at its Chennai plant operations, the Centre has said that it will look into the matter and try to ensure that such incidents do not happen again in the future.

"We will certainly see how best (such) matters don't occur again and we will encourage 'Make in India' campaign," Commerce and Industry Minister Nirmala Sitharaman said.

Sitharaman, who is also the minister of state for finance and corporate affairs, was taking questions regarding Nokia announcing suspension of its plant and how it will affect the government's 'Make in India' campaign. "This is an issue specifically related to a particular company and there is an issue on that. We are seized of the matter. We will look at it," she said.

Yesterday, Nokia had announced to suspend production at its Chennai plant from November 1, owing to termination of mobile purchase agreement by Microsoft and some tax disputes.

"Unfortunately, the continuing asset freeze imposed by the tax department prevents Nokia from exploring potential opportunities for the transfer of the factory to a successor to support the long term viability of the established, fully functional electronics manufacturing ecosystem," the company had said.

Tax authorities allege that Nokia avoided paying taxes by wrongfully claiming an exemption on software exports.