Automobile major Tata Motors has said it received a loan worth Rs 584.8 crore and not a "grant" from Gujarat government for setting up a factory in the state.
Automobile major Tata Motors has said it received a loan worth Rs 584.8 crore and not a “grant” from Gujarat government for setting up a factory in the state. “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,” the automobile major said in a statement on Thursday.
“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 government has given a loan of Rs 584.8 crore 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 statement said.
“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.”