Congress alleged big sops to TATA in Gujarat

Congress alleged big sops to TATA in GujaratThe state unit of congress party in Gujarat demanded white paper on concessions offered to Tata's Nano project by the ruling Narendra Modi government. An anonymous note circulated in vernacular media alleged that TATA is offered big sops for establishing Nano project in the state for publicity of state chief minister Narendra Modi.

The 11 page note alleged that the company is offered a soft loan of Rs 9,570 crore at 0.1% interest rate which is payable after 20 years. The company is offered more sops and concession as compared to concessions offered by West Bengal. State would also bear the expenses of infrastructure cost of developing roads, electricity and gas supply, besides cost of 100 acre township for company’s employees. The state government has reportedly ordered enquiry of leakage of the document.

State Congress party president, Siddharth Patel alleged that the project would cause huge losses to the state exchequer. The sate is also proposing incentives of  Rs 30,000 crore for the small car project. He, however, said that the party is not against TATA but it can not accept the exploitation of the state exchequer.

State government spokesperson, Jay Narayan Vyas ruled out extra concession to TATA. However, he advocated certain concession for the industrialization of the state.

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