After Rahul Gandhi’s barb, Tata says ‘were given loan, not grant’

Tata Motors released a statement that the company has, so far, received Rs 584.8 crore as loan, and not grant. It said this loan “is from taxes paid by Tata Motors”.

By: Express News Service | Ahmedabad | Published: December 1, 2017 6:08 am
Congress National vice-President Rahul Gandhi addressing the Rally (Express Photo/Pradeep Kumar/File)

In an apparent response to Congress vice-president Rahul Gandhi charge that the BJP-led Gujarat government extended undue favours of Rs 33,000 crore to it for car manufacturing facility at Sanand, Tata Motors on Thursday released a statement that the company has, so far, received Rs 584.8 crore as loan, and not grant. It said this loan “is from taxes paid by Tata Motors”.

Without naming the Congress leader or the party in the statement, the company said: “Given the scale of the project and its potential to drive growth in the state, the Government of Gujarat offered Tata Motors an incentive package in the form of a loan (not a grant), which is to be repaid to the state government as per the loan agreement executed. The loan given to Tata Motors from the government is from taxes paid by Tata Motors. Until now, the state government has given a loan of Rs 584.8 crore to Tata Motors.”

“Since the establishment of the Sanand plant, there has been a spurt in economic activity and growth in employment (direct and indirect) within the state, making Gujarat one of the key auto hubs within the country with huge employment generation. The project has also given rise to capital investments which has further resulted in the development of incidental industrial activities and employment generation in small and medium industries,” it added.

Also read | Congress alleges ‘power scam’, accuses BJP govt of benefiting four private firms

Rahul has been attacking Prime Minister Narendra Modi, alleging that he gave away Rs 33,000 crore for the Nano plant in Sanand near Ahmedabad, while the previous UPA government gave that much money towards the MNREGA. He also claimed despite the state government’s assistance to the company, no Nano car can be spotted on the roads of Gujarat.

After Tata Motors statement, the Congress hit back at the government, saying the loan given to “poor” Tatas is at 0.01%, while the interest levied on farm loans is 18%. “Are farmers rich and Tata poor that the Gujarat government is charging high rate of interest from the farmers?” Congress’s spokesperson Randeep Singh Surjewala said.

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  1. C N Raghuraman Raghuraman
    Dec 1, 2017 at 12:01 pm
    Rahul Gandhi, Mani Shankar Iyer and such others make the job of BJP easy. What appeared to be a tough contest in Gujarat is losing steam by Congressman. Hope despite all these bloopers we see a close contest
    1. Narasimha Prakash
      Dec 1, 2017 at 11:41 am
      Congress economics is to put more money in inefficient public sector where the honest tax payers' money keeps going down the drain. Biggest example is Air India, not to forget many of the public sector giants which have closed down, Ex: ITI, HMT to name just a few. Add to this they do not want private sector to be encouraged who create jobs and bring efficiency to production and marketing. The socialist way of the congress has been junked by many countries around the world including China and Russia who had practiced the socialist form. The congress seems to be in a time warp and do not know which way to go forward. The prince keeps promising that he will waive farm loans. Where from is he going to get the money? Is he going to print? The money has to come from the tax payers, a majority of them are the private corporates. How long the party and its prince keep talking nonsense?? Enough is enough of this congress economics and it will be good to get rid of the party everywhere.
      1. R
        Dec 1, 2017 at 10:06 am
        In Japan,USA and Europe the governments support/nurture big private players to conquere the world where as in India stupid congress, AAP and congress type g00ns are trying to destroy our own private Industries who are supposed to compete with foreign en ies in current liberalizing economy. That too slander against most respectable TATA industries which gave India IISc, TIFR, Taj Hotels, Steel plants etc. for last hundred years and more. It is such a tragedy that corrupt parties are ready to self destruct to gain some votes and score cheap political points so recklessly! It only proves these type parties should be completely destroyed as they have become biggest stumbling block for India's growth/progress.
        1. S
          Dec 1, 2017 at 8:52 am
          The nation knows how the Indian Govt during the congress party’s rule gave bank loan to Vijay Malaya to the tune of 9500 crores and how Mallya defaulted the payment of such large loans from the nationalised banks. The people in India are watching how the present Govt under BJP is battling legally to extradite Mallya to India from London! People in India how the farmers in India have committed suicides in lakhs over the years under the Congress regime due to the farmers’ inability to repay loans due to crops damage, floods and drought! One fails to understand why the congress party and its foolish Vice President spread lies about the loan extended by the Gujrat state Govt to the Tata Motors as the state’s grant? Plz, Rahul, don’t unabashedly spread lies for the sake of winning elections when your own party and it’s leaders are tainted with massive corruptions.
          1. J
            Jehangir E
            Dec 1, 2017 at 8:27 am
            Ignorance can be fixed but Pappu is forever. In spite of getting slaps again and again, he will make the same comments. But you may find so many hired slaves to prop up pappu.
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