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DRT refuses to shift Daewoo case

S Kalyana Ramanathan  |  New Delhi 

It is learned from industry sources that the decision of the DRT was based on the fact that the company's three principal creditors, ICICI Bank, IDBI Bank and Exim Bank are based in Mumbai.
The application to move the case from Mumbai to Delhi or Uttar Pradesh was on the grounds that Daewoo's plant was located in Surajpur in Uttar Pradesh.
Even as the settlement in the Daewoo India case is prolonging without any solution in sight, the only buyer who is still interested in buying the assembly facility, General Motors India (GMI), is firming up alternate plans to expand its presence in India.
A GMI spokesperson said alternate plans to expand the company's presence in India have been drawn up and would soon be announced.
Though GMI officials refused to discuss the alternate plans at this stage, sources in the industry said the Indian subsidiary of world's largest automobile company has two options "" either to announce the next tranche of expansion at the company's Halol (Gujarat) facility or enter into a fresh contract manufacturing deal with
GMI is on the verge of commissioning the expanded facility in Halol, which would now roll out 60,000 units per annum.
Though General Motors took over the Daewoo Motors operation worldwide, since the latter had slipped into bankruptcy, the deal did not include the Indian operations.

First Published: Thu, March 03 2005. 00:00 IST