CHENNAI: (TIP) Finnish handset maker Nokia will not manufacture its recently launched Nokia X phone at its Chennai plant, which has become the focal point of a Rs.21,000-crore tax dispute, according to people with direct knowledge of the matter. The phone, which has been widely touted as a game-changer for the company, will be imported from China.

Nokia is currently struggling to transfer its plant and other assets to software giant Microsoft before the acquisition is closed. According to sources, the decision to make the Nokia X in China could have come because rolling it out from India would require more investment at the Chennai plant. Also, with Nokia’s new plant having come up recently in Vietnam, a certain amount of redistribution and balancing in the company’s capacity is taking place.