Reacting on Congress vice-president Rahul Gandhi’s allegations during Gujarat election's poll campaign on Tata Motors for taking favour from Gujarat Government to set up Nano car plant in Sanand on the outskirts of Ahmedabad by taking grant, the company on Thursday issued a statement and denied the blames.
As per the statement of the company, it set-up manufacturing plant in Gujarat due to investor-friendly environment created by the State Government with a long-term vision to make it one of the leading automotive hubs to contribute to the prosperity of Gujarat and India.
Given the scale of the project and its potential to drive growth in the State, the State Government offered Tata Motors an incentive package in the form of a loan and not a grant, which is to be repaid to the State Government as per the loan Agreement executed. The loan given to Tata Motors from the Gujarat Government is from taxes paid by Tata Motors.
Until now, the state Government has given a loan of Rs 584.8 Cr to Tata Motors.
‘‘Since the establishment of the Sanand plant, there has been a spurt in economic activity and growth in employment (direct and indirect) within the State, making Gujarat one of the key auto hubs within the country with huge employment generation. The project has also given rise to capital investments which has further resulted in the development of incidental industrial activities and employment generation in small and medium scale industries,’’ said the statement.