Chaba: Very close

New Delhi, May 9: General Motors India Ltd (GM India) will decide in the next two months whether or nor to buy the assets of the bankrupt Daewoo Motors India.

?The non-performing assets (NPAs) of Daewoo have been handed over to Asset Reconstruction Company of India Limited (Arcil). They are talking to various government authorities. We hope the picture will become clearer after one to two months; then we will take some decision,? Rajeev Chaba, the new president and managing director of GM Motors India, said here today.

The company would, however, push ahead with its alternative plans, including the formation of greenfield and brownfield projects and expansion of its Halol facility in Gujarat, if the Daewoo sale was further delayed.

Maintaining that the Daewoo asset sale had been delayed by over a year due to legal complexities, he said the company was open to all options. ?We have not decided on these plans, but they are on the cards,? said Chaba.

At present, Arcil is in talks with government agencies to sell Daewoo?s Surajpur plant near Noida.

The interest of General Motors in the Daewoo plant has been waning because of the long-drawn battle with the creditor of the bankrupt Korean automaker?s subsidiary. GM, which had acquired some of Daewoo?s worldwide assets three years ago, is the only entity that is interested in buying the Surajpur plant.

The bids called by Arcil for the sale of Daewoo assets, which closed on April 25, failed to elicit any response. Last year, GM had completed due diligence on Daewoo?s Surajpur plant.

Meanwhile, Arcil has moved the Supreme Court in an effort to break the impasse. In its petition, Arcil said Daewoo should be allowed to proceed with the sale while the dispute between the banks and the revenue department could be sorted out at later. The debt appellate recovery tribunal had ruled that banks should get priority over the revenue department on sale proceeds.

However, the revenue department has filed an appeal in the high court, challenging the order. The court is yet to announce its decision on who should have the first right over the sale proceeds. Arcil has acquired Daewoo loans from two key lenders ? ICICI Bank and Exim Bank.

Chaba said GM planned to introduce at least two car lines every year from 2006, adding, ?We want to be a serious sports utility vehicle competitor rather than relying on imports.?