Centre to Treat Nokia Factory Closure as a Bitter Lesson
With Nokia announcing its plans to close down its Sriperumbudur plant in November, the Central Government has said that it will ensure that such incidents never recur in future. It looks as if the Centre is treating the entire episode as a lesson.
While talking to the media, the Minister of State for Commerce and Industries, Nirmala Sitharaman, said, “We will definitely ensure that such incidents don’t happen again. We will encourage ‘Make in India’ scheme. This issue is an isolated incident involving only one company. We are paying attention to it.”
In his Independence Day address, Prime Minister Narendra Modi had asked foreign companies to conduct their manufacturing processes in India and give employment to Indians. Meanwhile, following its agreement with Microsoft, Nokia has announced that it will close down its Sriperumbudur plant on November 1. But the Supreme Court, on the 14th of this month, had ordered the company to pay a caution deposit of Rs. 3500 crores in the case relating to pending income tax payments from the company.
Due to this pressure, the Sriperumbudur factory entered into the contract with Microsoft to manufacture its cell phones, and continued to function. But, since Microsoft has cancelled the agreement, the plant’s manufacturing process has come to a standstill.
It is however worth noting that according to the leaders of various employee associations, more than 1000 workers still continue to work at the Sriperumbudur plant.