Report-Gujarat Govt. has sanctioned a Loan to Tata Nano plant

The government of Gujarat accepted at the Assembly that it had paid Rs.456.79 crore as a loan to Tata Motors to arrange its Nano plant near Sanand in Ahmedabad district. On the agreement signed between Tata motors and the State Govt. in January 2009, Senior Congress MLA Shaktisinh Gohil discussed the details during the assembly, regarding the loan given to the brand. Also adding upon that the Chief Minister of Gujarat, Anandiben Patel who is responsible to handle industries portfolio, has given in writing and confirmed amount Rs 456 crore to be given as a loan to Tata motors for setting up their plant.

 

According to the reply by the CM, Rs 167.20 crore was paid in 2012-13, Rs 252.34 crore was allotted in 2013-14 and Rs 37.25 crore was paid in 2014-2015. Gohil also questioned the government to provide details about breech of the contract by Tata Motors, and answer about the steps taken in order to take action against the company. To address the above mentioned query, the CM replied that there has been no such report prepared and brought to notice by the govt. and hence no action has been taken as yet.

 

As the Congress has been criticizing this association. In a House discussion on budget allocations for Labor and Employment department yesterday, Congress MLA from Sanand, Karamshi Patel alleged that Tata Motors does not employ local youths in its plant, which is a violation of the agreement. The Congress MLA from Sanand suggested that in place of giving land and financial assistance to such giant groups who do not employ locals, the government should facilitate smaller industries. He also claimed that the Nano is currently not manufactured at the Sanand facility, which is also a violation of agreement.