Tata Motors to Receive Rs.95 billion from Gujarat Government for Nano Plant

Tata Motors will receive a loan of Rs.95 billion at an interest rate of 0.1 percent for 20 years from Gujarat government for building up a township and a ‘transport nagar’ in the adjacent region of Tata’s Sanand manufacturing plant. The car maker shifted its manufacturing plant of Nano Project from Singur in West Bengal to Sanand in Gujarat last month as Trinamool Congress-led farmers set up huge protests against Tata’s Nano plant.

Gujarat government, on the other hand, has lent its helping hand for the Tata to carry on its Nano Plant in the state and assured Tata of providing different concessions.

Times of India reported:

Tata Motors will get 20 years from the commencement of the project to repay the amount at an interest rate of 0.1 percent. The amount will be repaid by adjusting value added tax dues of the company, the sources said.

Local government officials refused to comment on the deal between the government and the auto maker.
However, Tata Motors officials said the total amount was an aggregate of “various concessions”, including the 100 acres, stamp duty exemptions and concessional power tariff.

Tata Nano is one of the most alluring car projects taken in the domestic car industry in India over the last few years. Tata Nano is touted as the world’s cheapest car which is expected to be priced at Rs. 1 lakh. No doubt, this car has huge room of getting success in the domestic car market of India. Coupled with its export demand, it is expected that Tata Nano will have a huge demand annually. So, Tata Nano plant is expected to be continued for a long time and this plant will create lots of employment and will make infrastructural development in the state. So, it is a win-win situation for both.