"The Prime Minister (Narendra Modi) took initiative to resolve Nokia factory issue so that mobile manufacturing can be restarted in its Chennai plant," a source said.

An inter-ministerial panel was formed in this regard and Central Board of Direct Taxes (CBDT) has agreed to the proposal of allowing sale of plant and deposit realised amount in escrow account, the source added.

On March 3 in Parliament, Modi has indicated that the Tamil Nadu-based Nokia plant, which shut down a few months ago, is likely to start functioning again.

The inter-ministerial panel set up in this regard included Department of Revenue, Department of Industrial and Policy Promotion (DIPP) and Department of Electronics and IT.

CBDT was part of the discussions. The assets of Nokia Chennai plant have been frozen by the
Income Tax Department and the next hearing in the Nokia tax case is on April 6, when the resolution will be placed before the Supreme Court, the source explained.

"There are three buyers who have shown interest in the plant but the deal can be finalised only after the court allows its sale," the source assured.

The I-T Department says Nokia India and Nokia Corporation owe Rs 21,153 crore as total tax liability, including penalty, for the seven-year period from 2006 to 2013.

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