General Motors India has obtained approval from the Maharashtra Government to close its Talegaon plant. However, this does not mean that GM’s exit from India is complete, as there are still some steps to be taken. The approval is subject to conditions such as the separation package, obtaining a no objection certificate, and sharing job details with the buyer, Hyundai Motor India Ltd.
In March 13, Hyundai Motor India signed a term sheet with GM for the potential buyout of the Talegaon facility. The final deal is contingent on meeting certain conditions and obtaining regulatory approvals.
It is worth noting that the approval has been granted while General Motors Employee Union and the company are engaged in a legal dispute over alleged illegal termination. The union has been in legal battles with GM since 2021. GM initially applied for closure of the plant on November 20, 2020, and filed a fresh application on June 27, 2022.
A GM spokesperson expressed gratitude for the government’s support and stated that impacted employees will receive a settlement package equivalent to 110 days of wages per year of service. The spokesperson urged the employees to accept the remaining balance of the separation package.
The Minister of Labor for Maharashtra State, Suresh Dagadu Khade, issued a six-page order on July 5 in response to GM’s application. The order states that the plant can be closed due to heavy losses and outlines conditions such as clearing all dues within 60 days and obtaining necessary certificates and permissions. The order also requires GM to share job details with the new incumbents.
“In larger public interest, the Application of Closure is accepted. This will also facilitate new incumbents to start afresh,” said Khade in the order.