The government of Gujarat has decided to offer Tata Motor a loan package of Rs 95 billion for developing the nearby infrastructure of the newly built Nano Plant at Sanand. The loan will be repaid by the auto company within a period of 20 years from the commencement of the Nano plant at an interest rate of 0.1 percent. The company will repay the amount by adjusting the value added tax dues. A township and a transport nagar will be built by Tata Motors near the plant location in Charodi village near Sanand with the help of the loan. The additional infrastructure will provide logistic support for the Nano project.

 

Report says that both the sides have approved the deal. However, nothing has been revealed about the deal either by the state government or by Tata Motors. The Gujarat government has also assured to offer the auto company 100 acres of additional land for building up the township project. The Nano plant of Tata Motors had been transferred from Singur, West Bengal to Sanand in Gujarat on October. The 1-lakh car project in Singur had to face enough protest from Mamata Banerjee-led Trinomol congress and farmer community.