GANDHINAGAR, Nov. 11: Details of the “coup” executed by Gujarat chief minister, Mr Narendra Modi, in getting the Nano plant to Sanand are now coming out. The Congress has calculated that the "sops" given to Tata Motors mean that the Gujarat government's contribution to the one-lakh car will be Rs. 60,000 per car.Mr Siddharth Patel, state Congress president, said the soft-loans and other concessions given will "add upto Rs. 30,000 crores". This has to be paid back in 20 years. "By then 50 lakh cars, at 2.5 lakh cars a year, would have been produced... This means that the cash incentive given adds up to Rs. 60,000 per car." He was referring to media reports about the details of the accord signed between the government and Tata Motors. While government officials have refused to confirm or deny its authenticity, there’s a document circulating in the secretariat that says that a loan of Rs 9,570 crores at a simple interest of 0.1% has been given. The deal, according to the document, is that the Tatas would get Rs. 2900 crores loan for the plant, plus Rs 6,670 crores for infrastructure costs. The plant also gets concessional power tariff, and exemption from payment of stamp duty, registration and transfer charges.
Source: The Statesman
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