The Gujarat state government will give benefits worth Rs. 95 billion to the Tata Motors project in Sanand. The company has recently shifted its manufacturing operations to manufacture the world’s cheapest car, Tata Nano. The state government shall offer benefits in terms of development of infrastructure, project area and other resources.
Tata Motors will need to pay for the project from 20 years of commencement of the project. The interest rate for the repayment amount will be 0.1 percent. The repayment will be adjusted against the value added tax dues on the company.
Tata Motors plans to develop a “Transport Nagar” near the plant location in Charodi. It also plans to build a township keeping in mind the developing plant and its HR requirements. The government has also pledged to provide hundred acres of land for developing the proposed township.
Ratan Tata, Chairman of Tata Group, announced last month to shift its Nano plant from Singur in West Bengal to Sanand in Gujarat. The company had faced strong protests from the farmers who alleged that the government has forcefully taken away their land and demanded that the land should be returned to them. The protests were led by the Opposition party, Trinamool Congress, led by Mamata Banerjee.
