Chennai:
It is a sad day for Prime Minister Narendra Modi's 'Make in India' story. This evening, former mobile phone major Nokia will shut down its largest plant at Tamil Nadu's Sriperumbudur, rendering over 8,000 workers jobless.
Microsoft, which acquired Nokia's mobile phone wing, hasn't been able to buy this plant. The government has put a freeze on Nokia's assets due to a tax dispute over an estimated Rs 23,000 crore. For Microsoft, making smartphones in China and Vietnam will be cheaper than taking over Nokia's plant.
Nokia's troubles began after the Income Tax Department issued it notice for Rs 21,000 crore. Last year, the Tamil Nadu government, too, slapped it a notice of Rs 2400 crore for VAT related issues.
At his home in Chennai, 28-year-old Sridharan, an operator at Nokia plant, looks a shattered man. He had walked into the plant straight after his schooling and ended up earning Rs 15,000 a month.
But now, with no new job coming his way, he has abandoned his wedding plans. "If only Nokia gives us jobs we can think about marriage or future. We don't want money, only jobs," he said.
Last year, Devi Priya, who was in the plant's quality control department, accepted voluntary retirement. But she hasn't been able to find anyone to pay for her experience and expertise.
"Other companies offer us just Rs 5000-Rs 6000 and don't talk about increments at all," said the young mother, who is the only breadwinner in the family.
Over the last few months around 6,000 workers had opted for the company's voluntary retirement package. The company is working out for a similar settlement the remaining 1,500 employees.
"Most of us have just studied up to Class XII. We can't study further now and we can't look for a new job either. Employers want younger workers," said another worker.
Ironically, the shutdown comes at a time when the Prime Minister is pitching to make India a Mecca for manufacturing. The Nokia crisis, say industry experts, will be an acid test for the drive.
The least the government can do, many say, is to lift the freeze on Nokia's assets which may pave the way for other manufacturers to take over and possibly re-employ the people who lost their jobs.