Nissan may abandon Tamil Nadu, fears state govt

Trust deficit apparent as the Tamil Nadu govt is apprehensive that a faster payment of incentives to the car maker on its investments near Chennai might result in the company abandoning the project

There seems to be a trust deficit emerging between the Tamil Nadu government and Japanese automobile manufacturer Nissan. The state government fears that a faster payment of incentives to the car maker (Renault-Nissan Alliance India Private Ltd or RNAIPL) on its investments near Chennai might result in the company abandoning the project, curtailing the anticipated economic activity from this project.

The bone of contention is a business model change implemented by the company in April 2012 which, the government alleges, resulted in "unlawful gains" and boosted subsidies in the short term.

The State Industries Department has filed a petition in the Madras