Gujarat govt gives loan against tax for Sanand plant which is to be repaid, its not grant: Tata Motors

Ahmedabad: Apparently in reaction to Congress vice president Rahul Gandhi’s repeated claims in political rallies that the then Narendra Modi led Gujarat government gave Rs 33,000 crore loan to Tata Motors for its Sanand plant, Tata Motors has today issued a statement based on facts attributed to its spokesperson:

The investor friendly environment created by the Government of Gujarat (GoG) encouraged Tata Motors to set-up its manufacturing plant in Sanand, with a long-term vision to make it one of the leading automotive hubs, further enabling Gujarat to contribute to the prosperity and growth of India. Given the scale of the project and its potential to drive growth in the state, the GoG offered Tata Motors an incentive package in the form of a loan (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 GoG is from taxes paid by Tata Motors. Until now, the State Govt. 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.

DeshGujarat

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