Gujarat reveals what it offered Tatas for Nano

The Gujarat government has made public the incentives it offered to the Tatas for luring the small car project to the state — a demand the opposition parties had been making ever since Tata Motors decided to relocate to Sanand in the state from Singur in West Bengal...

Written by Press Trust Of India | Gandhinagar | Published:January 20, 2009 12:44 am

The Gujarat government has made public the incentives it offered to the Tatas for luring the small car project to the state — a demand the opposition parties had been making ever since Tata Motors decided to relocate to Sanand in the state from Singur in West Bengal.

Three months after the Tatas’ decision,the state government passed a Government Resolution (GR),enlisting the incentives,which were kept under wraps till now. As per the GR,the state has offered everything that an industrialist would want to set up a project,starting from land,a soft loan,water supply,infrastructure facilities,etc. Major incentives offered to the car project include a soft loan of Rs 9,500 crore at 0.1 per cent rate of interest and repayable over 20 years.

Moreover,the existing policy of the state government regarding 85 per cent recruitment of locals would also not be applicable to the project. Coming to the land,the Tatas will have to pay the total price in eight installments at an interest rate of eight per cent,while approach roads and stamp duty waiver have also been granted.

Facilities for solid-waste disposal and effluent treatment plants would also be developed by the state government. On January 1,the Gujarat Industry Department had passed a GR pertaining to the Nano project and circulated it to very few departments and its officials,like industry,energy,water supply,sales tax etc.

In-charge Principal Secretary of Industries M Sahu,when contacted,confirmed the GR on Nano project.

The Government Resolution or GR further adds that apart from the land for the factory,the state government will also provide a 100-acre land near Ahmedabad to build the township.

A dedicated power connection of 200-KW will be provided to the factory while 14,000 cubic metre water per day would be supplied by the state water supply department.

The Tatas have promised to invest Rs 4,000 crore in Gujarat. The state government has also set up a committee headed by the Chief Secretary to monitor the proper implementation of the project.

It may be noted that on November 10 last,a confidential document (cabinet note) about sops to Nano was leaked to the media that lead to a ruckus in the government for doling out huge incentives to one individual business house.

Since then,the Modi government had kept mum on the issue without either confirming or denying the authenticity of the document that was leaked.

However,with the new GR,the government has not only tried to establish the genuineness of the leaked document but also set at rest all guessing games on the sops offered to the Tata Motors for relocating the Nano project to the state.

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