Maharashtra government keen to clear path for Hyundai's Rs 5,000 crore investment in GM's Talegaon plant

The Maharashtra State Government has pledged its full support to Hyundai Motor India's plans for a Rs 5000 crore investment commitment to the state over the next five years, even as it attempts to resolve the grievances of almost 1000 protesting workers.

The Maharashtra government's two key ministers, Labour Minister Suresh Khade and Industries Minister Uday Samant confirmed that the state is doing everything possible to resolve the differences with the former GM workforce, which has become an impediment in the transfer of GM's Talegaon plant to Hyundai Motors India.

Even as US carmaker General Motors (GM) is set to sign a definitive commercial agreement with South Korean car maker Hyundai Motor to sell and transfer its Talegaon Pune plant and its assets, the Mumbai High Court has admitted the GM Workers Union’s petition to strike down the deal.

Senior GM Workers' Union representatives informed Autocar Professional that their plea challenging the Pune Industrial Court’s order to stay the sale process to Hyundai Motors has been admitted by the Mumbai High Court. 

The employees' union is awaiting a decision from the High Court, which could impose a "Stay order' on the sale of the Talegaon Plant to Hyundai Motors.

The Industries Minister, who recently visited Hyundai's Goyang Studio facility in South Korea with Industry Secretary Dr. Harshdeep Kamble and MIDC CEO Vipin Sharma, stated that the State government is looking forward to both parties (General Motors and Hyundai Motors India) signing a commercial agreement for Hyundai to begin manufacturing operations in the state.

"We expect the Hyundai project to employ 4500 unemployed and underemployed youth in the state," Uday Samant said.

Hyundai Motors' Head of Business Strategy Planning Sub-Division. Dooha Choi, and Puneet Anand, AVP, Corporate Affairs and Corporate Communication, Hyundai Motor India participated in the discussion with the Maharashtra Government officials. 

State Labour Minister Suresh Khade stated that his labour department team is in contact with Hyundai Management to ensure that the former GM workers can be accommodated in the project.

"We have had extensive discussions with the Hyundai management to resolve the GM worker's issue, and we hope to resolve the worker's issue soon," Khade said.

Industry Minister Samant added. The state administration intends to finalise the planned Rs 5,000 crore, of which Rs 4,000 crore has been allocated for investment by 2028, Industry Minister Samant added.

According to Autocar Professional, the workers' union decided not to accept General Motors' VRS settlement plan as early as July 21, 2023.

When approached, GM workers union representatives stated, "We have been sent feelers to settle the issue as both parties are likely to sign the final binding agreement after August 16, 2023."

The workers warned us they would fight any such move 'tooth and claw' since "the state government has yet to formally engage in any constructive dialogue following the signing of the sale deed for Hyundai to take over the Talegaon Plant on July 5," one of the senior representatives said.
 

Also read: Exclusive: GM and Hyundai to sign commercial agreement for Talegaon plant within a few weeks