January 20, 2009 1:29:52 am
The state government has made public the incentives it had offered to the Tatas for luring the small car project to the state. The Opposition had been demanding an explanation on the sops ever since Tata Motors decided to relocate the factory in Sanand from Singur in West Bengal.
Three months after the Tatas decision,the state passed a Government Resolution (GR),enlisting the incentives. The GR states the state has offered everything that an industrialist would want to set up a project,starting from land,soft loan,water supply,infrastructure facilities. Major incentives offered include a soft loan of Rs 9,500 crore at 0.1 per cent rate of interest and repayable in 20 years. Moreover,the existing policy of the state regarding 85 per cent recruitment of locals will also not be applicable here.
Regarding 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. The GR adds that 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,while 14,000 cubic metre water per day would be supplied by the state water supply department. The state has also set up a committee headed by Chief Secretary to monitor the proper implementation of the project.
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