Official government resolution on how Gujarat was made "preferred destination" for Tatas

It is a matter of general knowledge that five years ago the Tata Motors was provided huge subsidies to shift its Nano plant from West Bengal to Gujarat, following a meeting between Gujarat chief minister Narendra Modi and top tycoon Ratan Tata. Ever since then, he has been hardselling Gujarat as the topmost investment destination for India. However, for long the Gujarat government kept a document which allowed the subsidy allowed subsidies a well-guarded secret. Prominent environmentalist Rohit Prajapati has now put the document in public domain:

Sanction of Loan to M/S Tata Motors Ltd. for Nano Car Project

Government of Gujarat, Industries and Mines Department
Resolution No. TMI./10/2008/51/1
Sachivalaya, Gandhinagar
Date:- 1/1/2009

Preamble:

For more than three decades, Gujarat is the preferred destination for investment in almost all industrial sectors, barring a few. As a result of the proactive role of the state government to attract investments, numbers of entrepreneurs / industrial houses are selecting the state as a destination of choice for investments in the sectors of Textile, Gems and Jewellery, Chemicals and Petrochemicals, Pharmaceuticals and Drugs, Steel, Cement, Engineering among others. However, the state is yet to attract good investment in the Automobile and auto ancillary sector. The auto sector has strong presence in other states like Maharashtra, Tamil Nadu and outskirts of Delhi state, where as Gujarat has only one car project. Though Gujarat has a strong engineering base and a number of engineering units, mainly in the MSME Sector, these are engaged in the supply of auto components.
Tata Group is one of India’s leading industrial houses and enjoys a reputation as a responsible corporate citizen even prior to independence. Tata Motors Limited (TML), which is part of the Tata group, is seeking to relocate some of its operations related to manufacturing plant for automobile products and components for the manufacture of the small car “Nano” from Singur in West Bengal. Given the Tata Group’s relationship with the State of Gujarat, its standing, both nationally and internationally, and the importance accorded to the Project by the industrial community of India, and the public in general, the State Government has come to the conclusion that in the present situation, it is desirable to have the said operations of the company in the State of Gujarat and do whatever is reasonably possible to provide a congenial environment and pro-active support for expeditions implementation of the Project and its operations.
Type of Loan:
Government of Gujarat (GoG) will provide fiscal incentives to TML in the form of a loan to TML at 0.1% simple interest per annum for amounts equal to the gross Value Added Tax (“VAT”) and Central Sales Tex (“CST”) payable to the GoG (or an equivalent Goods and Services Tax (“GAS”) or any other similar law for the levy of tax in Gujarat, on sale and purchase of goods, as and when introduced, on the sale of the Nano car and its parts and components from the date of commencement of the sale of the Nano car.
Quantum of Loan:
i. The maximum loan amount will be equal to: (a) 330% of the “TML Phase I Investment”; or (b) such amount as has been disbursed to TML by the govt. till the 20th year from the date of commencement of the sale of the “Nano”; whichever is lower. However overall amount of the loan shall in no case exceed the gross amount of tax paid to the GoG in the 20 year period under above mentioned laws.
ii. For the avoidance of doubt, it is made absolutely clear that the TML Phase I Investment shall be related only to the development, manufacture and sale of the Nano car, its components and related activities including the items set out in Schedule I.
iii. It will include the expenditure towards power supply i.e. 220 KV connection (having double circuit – feeding from two sources) up to the Project’s receiving station, as well as final power requirement of the Project in the range of 40-50 MVA. The project would require a separate 66 / 11 KV sub-station (having double circuit-feeding). All the above requirements will be made at the expense of TML, which would constitute a part of the TML Phase I investment. Gujarat, on sale and purchase of goods, as and when introduced), on the sale of the Nano car.
Repayment:
This loan will be repayable in monthly installments starting from the first month of 21st year (from the date of drawdown of such loan amount) of the commencement of first sale of the commencement of first sale of the “Nano”. The loan amount availed in the first month of the first year will be repaid in the first month of the 21st year along with interest and the loan amount availed in the second month of the year will be repaid in the second month of the 21st year along with interest and so on. The repayment will be along with the interest amount for that amount of the principal.
This is issued with the concurrence of Finance Department dated 6-12-2008 and dated 24-12-2008 on this department file of even number.

By order and in the name of the Governor of Gujarat.

P H Jagtap
Section Officer
Industries and Mines Department

Comments

Avoidable Narmada floods: Modi birthday fete caused long wait for release of dam waters

Counterview Desk Top advocacy group, South Asia Network on Dams, Rivers and People (SANDRP), has accused the Sardar Sarovar dam operators for once again acting in an "unaccountable" manner, bringing "avoidable floods in downstream Gujarat." In a detailed analysis, SANDRP has said that the water level at the Golden Bridge in Bharuch approached the highest flood level on September 17, 2023, but these "could have been significantly lower and much less disastrous" both for the upstream and downstream areas of the dam, if the authorities had taken action earlier based on available actionable information.

From 'Naatu-Naatu' to 'Nipah-Nipah': Dancing to the tune of western pipers?

By Dr Amitav Banerjee, MD* Some critics have commented that the ecstatic response of most Indians to the Oscar for the racy Indian song, “Naatu-Naatu” from the film, “RRR” reeks of sheer racism, insulting visuals and a colonial hangover. It was perhaps these ingredients that impressed the Academy of Motion Picture Arts and Sciences, one critic says.

Buddhist shrines were 'massively destroyed' by Brahmanical rulers: Historian DN Jha

Nalanda mahavihara By Our Representative Prominent historian DN Jha, an expert in India's ancient and medieval past, in his new book , "Against the Grain: Notes on Identity, Intolerance and History", in a sharp critique of "Hindutva ideologues", who look at the ancient period of Indian history as "a golden age marked by social harmony, devoid of any religious violence", has said, "Demolition and desecration of rival religious establishments, and the appropriation of their idols, was not uncommon in India before the advent of Islam".

A Hindu alternative to Valentine's Day? 'Shiv-Parvati was first love marriage in Universe'

By Rajiv Shah* The other day, I was searching on Google a quote on Maha Shivratri which I wanted to send to someone, a confirmed Shiv Bhakt, quite close to me -- with an underlying message to act positively instead of being negative. On top of the search, I chanced upon an article in, imagine!, a Nashik Corporation site which offered me something very unusual.

Biden urged to warn Modi: US can declare India as worst religious freedom offender

By Our Representative During a Congressional Briefing held on Capitol Hill, Washington DC, Nadine Maenza, former Chair of the United States Commission on International Religious Freedom (USCIRF), has wondered why the Biden administration should raise issues of mass anti-minority mob violence -- particularly in Haryana and Manipur -- with Modi. Modi should be told that if such violence continues, the US will be “compelled by law” to designate India as one of the world’s worst offenders of religious freedom, she urged.

Savarkar 'criminally betrayed' Netaji and his INA by siding with the British rulers

By Shamsul Islam* RSS-BJP rulers of India have been trying to show off as great fans of Netaji. But Indians must know what role ideological parents of today's RSS/BJP played against Netaji and Indian National Army (INA). The Hindu Mahasabha and RSS which always had prominent lawyers on their rolls made no attempt to defend the INA accused at Red Fort trials.

Asset managers hold '2.8 times more equity' in fossil fuel cos than in green investments

By Deepanwita Gita Niyogi* The world’s largest asset managers are far off track to meet the 2050 net zero commitments , a new study released by InfluenceMap , a London-based think tank working on climate change and sustainability, says. Released on August 1, the Asset Managers and Climate Change 2023 report by FinanceMap, a work stream of InfluenceMap, finds that the world’s largest asset managers have not improved on their climate performance in the past two years.

Evading primary responsibility, ONGC decides to invest Rs 15,000 crore in sick subsidiary

By NS Venkataraman* It is reported that Oil and Natural Gas Corporation (ONGC) will infuse about Rs 15,000 crore in ONGC Petro-additions Ltd (OPaL) as part of a financial restructuring exercise. ONGC currently holds 49.36 per cent stake in (OPaL), which operates a mega petrochemical plant at Dahej in Gujarat. GAIL (India) Ltd has 49.21 per cent interest and Gujarat State Petrochemical Corporation (GSPC) has the remaining 1.43 per cent.

'State-sanctioned terror': Stop drone attack on Adivasis, urge over 80 world academics

Counterview Desk A joint statement, “Indigenous Peoples’ Un-Freedoms and Our Academic Freedom: A Call for Solidarity”, endorsed by over 80 signatories, including international academics, activists and civil society organizations, as well as diasporic Indian academics and researchers, working with Adivasi (indigenous) communities in India, has made an urgent appeal to prevent future drone bomb attacks by the Indian state on Adivasi villages.

Sales, profits of Indian firms 'deteriorate', yet no significant increase in cost pressures

By Our Representative The Indian Institute of Management-Ahmedabad's (IIM-A's) latest Business Inflation Expectations Survey (BIES), a monthly exercise, has said that while cost perceptions data does not indicate significant increase of cost pressures, sales and profits of the Indian firms have deteriorated.

Search This Blog