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Gujarat reveals what it offered Tatas for Nano

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  • 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.

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    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.

    ... contd.

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