Mobile handset market leader Nokia, with manufacturing facility in an SEZ near Chennai, plans

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to revamp its business in India by infusing fresh investment of Rs 250 crore in the next three years, with potential to create 500 new jobs.

The company has furnished the information with the Commerce Ministry, seeking permission for its restructuring plan. Since the handset manufacturer has a facility in the Special Economic Zone(SEZ), it requires a nod from the Board of Approval (BoA) for effecting changes in its business model.

The BoA, headed by Commerce Secretary Rahul Khullar, will take up the issue at its meeting on January 24, an official said.

"Nokia has submitted that with a change in business model and streamlined processes, further investment of Rs 250 crore in India operations by 2014 as well as creation of additional 500 jobs is expected," he said.

The proposal is likely to find favour with the Ministry since the changes in the model "by splitting its business will be revenue neutral for the State and Central government," sources said.

Besides, the new arrangement may be "suitably ring-fenced so as to avoid any misuse by imposition of certain conditions."

At present, the handset major operates in the SEZ through two entities-- Nokia India Sales Private Limited (NISPL) and Nokia India Private Limited (NIPL). The Group has so far invested Rs 1,300 crore and exports over 60 per cent of its production from the Sriperumbudur facility.

Nokia which is battling a tough competition has been on a global restructuring exercise since early 2011. It had even announced to cut 300 jobs in India.