Gandhinagar, 22 July, 2014

Finance Minister Saurabh Patel today while replying questions by Congress MLAs said that Tata Motors has been given a loan by state government only for manufacturing of Nano cars.

Patel said there has been an agreement between the state government and Tata Motors Limited(Sanand plant) on loan equal to VAT to be paid on manufacturing of Nano car.

As per this intensive scheme, loan has been given against VAT amount of Rs. 167.20 crore in year 2012-13 and Rs. 252.54 crore in year 2013-14 thus total Rs. 419.54 crore.

The state government charges 0.1% interest annually on this loan.

The Minister said that on breach of agreement, the state government will take action.

It should be mentioned that Tata Motors has halted production of Tata Nano cars at Sanand plant. The company is reportedly modifying the plant to suit it for production of upcoming ‘Kite’ model of Tata Motors. As per the Minister’s statement in assembly, Tata Motors may not get benefit of loan for models other than Nano.