Nissan Initiates $770 Million Arbitration Against India
Japanese automaker Nissan Motor has begun international arbitration against India to seek more than $770 million in a dispute over unpaid state incentives, Bloomberg reported, citing Retuers.
A legal notice was sent to the Indian government last year, according to the report. Nissan sought payment of incentives due from the Tamil Nadu government as part of a 2008 agreement to set up a car manufacturing plant in the southern state, Bloomberg reported.
Reuters first reported on the arbitration quoting a person familiar with the matter and documents reviewed by it.
Quoting the notice, Reuters said Nissan’s repeated requests to state officials for the payment, due in 2015, were overlooked and even a plea by the company’s chairman, Carlos Ghosn, to Prime Minister Narendra Modi in March last year seeking central assistance did not yield any results.
The company is working with India to resolve the dispute, Bloomberg reported citing the automaker’s spokesperson.