Mukesh: fear stalks projects

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Kolkata, Mumbai, Aug 27: the 650 acre allotted for the main plant. The Tatas will pay this for the first five years, then step it up by 25% a year for five years. “This is very meagre for a rich industrial house like the Tatas,” Bandopadhyay said. “Rs 1 crore is nothing.”

The government has set aside nearly Rs 120 crore for the acquisition of the total 997 acre for the project. Earlier, Sen had defended the incentives by pointing out that other states are offering the Tatas land free for the project.

Although the minister had briefed the assembly on March 15, 2007, about the deal, the government had earlier declined to reveal the contents fully, citing business confidentiality. The government had also blocked an opposition bid to obtain details under the Right to Information Act, citing the same reason, and attracting allegations of showing favouritism towards the Tatas at the cost of other industrialists. The standing committee is scheduled to meet again on August 29.

The minister declined to reveal to the media the details of the deal, saying he would have to consult the Tatas first.

Meanwhile, agencies reported that Sen had said the state government had to compensate the Tatas for losses incurred for not setting up the proposed small-car plant in Uttarakhand, where the Centre had extended tax concessions to investors.

The concession the West Bengal government decided to extend to Tata Motors had three components: land, refund of VAT and a soft loan. Under the agreement, Sen said the state government decided to extend a soft loan of Rs 200 crore, but since the Central Budget reduced excise duty on small cars, the loss Tata would suffer for not setting up its plant in Uttarakhand would go down.

“Now, we may not have to extend a soft loan,” he said.