GM India gets conditional approval from Maharashtra govt for Talegaon plant closure

economictimes.indiatimes.com:

Talegaon plant. While the move brings it a step closer towards settling a deal with the warring union and then inking a commercial agreement with Hyundai Motor India Ltd, GM’s exit from India is far from over. The approval is based on certain conditions that relate to the separation package, seeking a no objection certificate from various agencies and sharing job related details of the workers with the buyer—HMIL.

Hyundai Motor India signed a term sheet with the US automaker for a potential buyout of the latter’s Talegaon facility March 13 this year. A final deal is subject to meeting certain conditions including obtaining regulatory approvals from relevant government authorities and all stakeholders related to the acquisition. The approval comes even as the General Motors Employee Union and the company remain locked in a protracted legal dispute.

The workers allege illegal termination after the company decided to exit. They have been locked in legal battles since 2021. GM first filed an application seeking closure of the plant on 20 November 2020.

Subsequently it filed a fresh application on June 27 this year, citing inordinate delay. “We acknowledge the decision to approve the closure application for the Talegaon site and we are grateful for the support of the Government of Maharashtra for GM’s operations at the site over a number of years,” said a GM spokesperson. GM Union president, Sandeep Bheghade said, the union is seeking legal opinion on the order and hence cannot comment immediately.