October 16, 2008 12:59:51 am
The Gujarat Government has given certain concessions to Tata Motors in the sale of land for the Nano car project that is being set up near Sanand in Ahmedabad district. At its weekly meeting held here on Wednesday, the Cabinet fixed the cost of 1,100 acres of land at Rs 400.65 crore. The land rate was calculated at Rs 900 per sq metre. There was no official press briefing on the decision, but later, the Government issued a one-page statement saying that the land cost for the Nano project was fixed as per the existing rules. Sources in the Chief Minister’s Office (CMO) said the Government has decided to give some concessions to the company.
Sources added that it was decided that the company will be given a two-year moratorium wherein the company will not have to pay any installment for the land to the Government. However, it would have to pay an 8 per cent interest during this period.
The Government has exempted Tata Motors from paying 5 per cent stamp duty on the land transaction. The exemption of stamp duty on the total land cost will benefit the company by Rs 20 crore, the sources said. The company will make staggered payment in eight equal installments in as many years, with 8 per cent interest. In case it fails to pay regular installments, it will have to pay compound interest rates.
A senior CMO official said the Government has turned down the company’s demand of converting the land from new tenure to old tenure. But the Government has agreed to waive off the conversion tax of Rs 6 per sq metre, which is usually charged for converting agricultural land into non-agricultural one.
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