Skip to main content

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

Post a Comment

TRENDING

Academics urge Azim Premji University to drop FIR against Student Reading Circle

  By A Representative   A group of academics and civil society members has issued an open letter to the leadership of Azim Premji University expressing concern over the filing of a police complaint that led to an FIR against a student-run reading circle following a recent incident of violence on campus. The signatories state that they hold the university in high regard for its commitment to constitutional values, critical inquiry and ethical public engagement, and argue that it is precisely because of this reputation that the present development is troubling.
Post a Comment
»

'Policy long overdue': Coalition of 29 experts tells JP Nadda to act on SC warning label order

By A Representative   In a significant development for public health, the Supreme Court of India has directed the Food Safety and Standards Authority of India (FSSAI) to seriously consider implementing mandatory front-of-pack warning labels on pre-packaged food products. The order, passed by a bench of Justices J.B. Pardiwala and K.V. Viswanathan on February 10, 2026, comes as the Court expressed dissatisfaction with the regulatory body's progress on the issue.
Post a Comment
»

When tourism meets tribal law: The Vanajangi dispute in Andhra Pradesh

By Palla Trinadha Rao   A writ petition presently before the High Court of Andhra Pradesh has brought into focus an increasingly important question in the governance of tribal regions: can eco-tourism projects in Scheduled Areas be implemented without the consent of the Gram Sabha? The case concerns the establishment of a Community Based Eco-Tourism centre at Vanajangi village in Paderu Mandal of Alluri Sitarama Raju District, a region located within the Scheduled Areas of Andhra Pradesh. 
Post a Comment
»

UAPA action against Telangana activist: Criminalising legitimate democratic activity?

By A Representative   The National Investigation Agency's Hyderabad branch has issued notices to more than ten individuals in Telangana in connection with FIR No. RC-04/2025. Those served include activists, former student leaders, civil rights advocates, poets, writers, retired schoolteachers, and local leaders associated with the Communist Party of India (CPI) and the Indian National Congress. 
Post a Comment
»

The ultimate all-time ODI XI: A personal selection of icons across eras

By Harsh Thakor* This is my all-time best XI chosen for ODI (One Day International) cricket:  1. Adam Gilchrist (W) – The absolute master blaster who could create the impact of exploding gunpowder with his electrifying strokeplay. No batsman was more intimidating in his era. Often his knocks decided the fate of games as though the result were premeditated. He escalated batting strike rates to surreal realms.
Post a Comment
»

India’s green energy push faces talent crunch amidst record growth at 16% CAGR

By Jag Jivan*  A new study by a top consulting firm has found that India’s cleantech sector is entering a decisive growth phase, with strong policy backing, record capacity additions and surging investor interest, but facing mounting pressure on talent supply and rising compensation costs .
Post a Comment
»

Aligning too closely with U.S., allies, India’s silence on IRIS Dena raises troubling questions

By Vidya Bhushan Rawat*  The reported sinking of the Iranian ship IRIS Dena in the Indian Ocean near Sri Lanka raises troubling questions about international norms and the credibility of the so-called rule-based order. If indeed the vessel was attacked by the American Navy while returning from a joint exercise in Visakhapatnam, it would represent a serious breach of trust and a violation of the principles that govern such cooperative engagements. Warships participating in these exercises are generally not armed for combat; they are meant to symbolize solidarity and friendship. The incident, therefore, is not only shocking but also deeply ironic.
Post a Comment
»

India’s foreign policy at crossroads: Cost of silence in the face of aggression

By Venkatesh Narayanan, Sandeep Pandey  The widely anticipated yet unprovoked attack on Iran on March 1 by the United States and Israel has drawn sharp criticism from several quarters around the world. Reports indicate that the strikes have resulted in significant civilian casualties, including 165 elementary school girls, 20 female volleyball players, and many other civilians. 
Post a Comment
»

Was Netaji forced to alter face, die in obscurity in USSR in 1975? Was he so meek?

  By Rajiv Shah   This should sound almost hilarious. Not only did Subhas Chandra Bose not die in a plane crash in Taipei, nor was he the mysterious Gumnami Baba who reportedly passed away on 16 September 1985 in Ayodhya, but we are now told that he actually died in 1975—date unknown—“in oblivion” somewhere in the former Soviet Union. Which city? Moscow? No one seems to know.
1 comment
»