Renault ‘defers’ Chennai plan

French auto maker Renault has decided to “suspend” its proposed investment in the Rs 4,500 crore plant at Oragadam, near Chennai in an equal stake joint venture with Nissan.

“Renault would defer its investment in the assembly line for its cars — till the economic situation improved. Our commitment to invest in the Chennai facility and India remains undiluted,” Renault country general manager India operations Marc Nassif told DNA.

There has been talk that Renault may pull out of the venture for some time now.
Nissan has already fulfilled its construction commitment at Oragadam, as per the agreement signed with Tamil Nadu in February 2008.

Meanwhile, a state government official said he has no formal intimation of any change in the JV or change in plans.

“We haven’t received anything on Renault suspending its investment,” a senior official of the Tamil Nadu industries department said.

It is not the concern of the government to intervene in the business of private companies or joint partners, the official said.

“The government is only concerned about industrial development and the MoU is a package of support offered by the government... We can’t interfere in the internal matters of the joint venture, but only seek periodic reports on the progress of the project,” he said.

In some cases, the companies may even seek an extension of timeframe to complete the project,  he said.

“If we find the reasons justifiable, we will extend the time frame. There is nothing fixed in the MoU, everything is flexible,” the official said.