Gandhinagar: A tripartite Memorandum of Understanding (MoU) was signed today here in the presence of Chief Minister Bhupendra Patel between the State government, Tata Motors’ subsidiary Tata Passenger Electric Mobility Limited and Ford India Private Limited.

As per the MoU, Tata Motors Ltd will acquire all land, buildings, plant machineries and the vehicle assembly unit of Ford India Pvt Ltd at Sanand.

Tata Motors will also accommodate all staffers of vehicle assembly plant of Ford India Pvt Ltd at Sanand.

Ford will continue to manufacture engines at its Sanand plant, for which Tata Motors will make available the land on lease.

Gujarat government has signed this tripartite MoU as it is going to assist for all required approvals in this connection. The government will also assist for water, power, effluent treatment plant and common facilities.

The State government had signed State Support Agreement with Ford India in year 2011.

The current MoU will prevent job loss for former Ford India workers. It will also open the path of manufacturing of electric vehicles in Gujarat. Ford Motors’ plant offers 3,043 direct and 20,000 indirect employment. The closure of Ford India’s Sanand based plant had created an issue for the State government as it would result into the loss of about 25,000 jobs.

The vehicle assembly plant of Ford India in Sanand is spread across 350 acre land while the engine plant is standing over 110 acre land.

Managing Director of Tata Motors Mr. Shailesh Chandra and Ford India’s Transformation Officer and country head Balasundaram signed the MoU along with Gujarat government’s Additional Chief secretary for Industries Mr. Rajiv Gupta.

These details were shared by the State government in a note released to media today morning. DeshGujarat

Tata Motors to acquire Ford India’s Sanand plant to make electric vehicles; Tripartite MoU signed https://t.co/BCugKjMdeL pic.twitter.com/D4jxnMsKfX

— DeshGujarat (@DeshGujarat) May 30, 2022

Based on Tata Motors release:

Tata Motors has signed a Memorandum of Understanding (MoU) with the Gujarat govt for the potential acquisition of Ford India’s Sanand plant, it said in a regulatory filing on May 30.

The agreement includes a transfer of Ford India’s land & buildings, vehicle manufacturing plant, machinery, and transfer of all eligible employees.

Tata Passenger Electric Mobility Limited (TPEML), a subsidiary of Tata Motors, would invest in new machinery and equipment at the plant to make the unit ready to produce its vehicles.

“It would establish an installed capacity of 300,000 units per annum, which would be scalable to more than 400,000 units. We anticipate this to take a few months,” it said.

The automaker noted that the MoU is a win-win for all stakeholders and it will help “Tata Motors accelerate the enhancement of its PV/EV manufacturing capacity.”

This unit is adjacent to the existing manufacturing facility of Tata Motors Passenger Vehicles Ltd at Sanand, which should help in a smooth transition.

The new development comes after the plant had ceased operations in April.