Tamil Nadu minister blames UPA's tax policy for Nokia's plant closure

CHENNAI: The Tamil Nadu government today blamed the Congress-led UPA and its ally DMK for the closure of Nokia's manufacturing plant near here by making a Rs 2,080 crore tax demand.

Responding to a calling attention motion in the state Assembly on the closure of the plant at Sriperumbudur on November 1 last after a eight-year run, Industries Minister P Thangamani referred to the retrospective amendment to the Income Tax Act (2012) by the Centre.

Following this, a notice was sent to the company demanding income tax remittance of Rs 2,080 Crore and subsequently a legal battle ensued, he said.

"I am duty bound to say that it is the Congress and DMK that were responsible for the closure of Nokia plant," he said.

DMK, which was part of the Congress-led UPA, did not oppose the retrospective amendment act, he charged.

"Is there any mistake with us (our government)?" he asked the opposition benches and added "to do politics", protest demonstration was announced (by DMK) on the day of Nokia's closure. But people would not be 'hoodwinked'.

Finnish mobile handset maker Nokia wound up its operations at the plant here, the world's largest mobile manufacturing facility, due to its exclusion from the Microsoft-Nokia deal.