Nokia’s Chennai plant fate hangs in balance

New Delhi : Finnish handset major Nokia on Monday said that it expects the $7.2 billion deal with Microsoft for the sale of its mobile devices and services business to conclude on April 25, even as the fate of its plant near Chennai remains uncertain.“Nokia today announced that it expects the transaction whereby the company will sell substantially all of its devices and services business to Microsoft to close on April 25, 2014. The transaction is now subject only to certain customary closing conditions,” Nokia said in a statement.

The future of Nokia’s Chennai plant, which employs 6,600 people and is entangled in a tax dispute with Indian authorities, is uncertain. A Nokia official said that the company is still exploring the option of operating the plant by getting into a services agreement, which would allow it to continue as a contract manufacturer for other companies.

Nokia has often indicated that the transfer of the Chennai plant may be adversely impacted if the tax dispute remains unresolved. Recently, it offered a voluntary retirement scheme to its employees in Chennai and about 700 trainees are learnt to have opted for it. A Nokia India spokesperson declined to confirm the number