In his election rallies, the Congress leader has repeatedly attacked PM Narendra Modi, alleging him of giving Rs33,000 crore benefits to Tata Motors for setting up the Tata Nano facility in Sanand when he was the Gujarat CM.
Drawn into the political crossfire after Congress vice-president Rahul Gandhi's charge that Gujarat government had extended undue favours to the tune of Rs33,000 crore for its Nano car plant in Sanand, Tata Motors said on Thursday that it had got Rs584.8 crore as loan, and not grant, from the state.
"The investor-friendly environment created by Government of Gujarat encouraged Tata Motors to set-up its manufacturing plant in Sanand. Given the scale of the project and its potential to drive growth in the state, the government offered Tata Motors an incentive package in the form of a loan (not a grant), which is to be repaid as per the Loan Agreement executed," Tata Motors said in a statement. Tata Motors also said that the loan given is from the taxes paid by it.
"Until now, the state government has given a loan of Rs584.8 crore to Tata Motors," the firm said.
In his election rallies, the Congress leader has repeatedly attacked PM Narendra Modi, alleging him of giving Rs33,000 crore benefits to Tata Motors for setting up the Tata Nano facility in Sanand when he was the Gujarat CM.
Tata Motors further said that since its Sanand plant was established, there has been a spurt in economic activity, making Gujarat one of the key auto hubs within the country.
Projected as the world's cheapest car with a price tag of just Rs1 lakh, the Tata Nano notched up good sales initially, but failed to catch the imagination of buyers.
Crossfire
- The investor-friendly environment created by Government of Gujarat encouraged Tata Motors to set-up its manufacturing plant in Sanand. The government offered Tata Motors an incentive package in the form of a loan (not a grant), which is to be repaid as per the Loan Agreement executed,” Tata Motors said.
- In his election rallies, the Congress leader has repeatedly attacked PM Narendra Modi, alleging him of giving Rs33,000 crore benefits to Tata Motors for setting up the Tata Nano facility in Sanand when he was the Gujarat CM.
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