Tata Motors Rubbishes Claim Of Getting Grant From Gujarat Govt

tata nano genx mileage

Gujarat government has been accused of giving Rs. 33,000 crore grant to Tata for Nano plant; the automaker says it received loan

Tata Motors has clarified its stand in the latest controversy regarding the Nano plant in Sanand in Gujarat. The automaker has said that it didn’t receive any grant from Gujarat government, but a loan of Rs. 584.8 crore for the factory. The controversy began after Rahul Gandhi accused the state government of giving the automaker a grant of Rs. 33,000 crore for the facility.

As Tata Motors has said, the loan was given to the company from the taxes paid by the brand. It also said that given the scale of the project and its potential to drive growth in the state, Gujarat government offered it an incentive package in form of loan and it has to be repaid to the government as per loan agreement.

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Tata Motors also claimed that due to the Nano plant in Sanand, the state has seen rapidly increasing economic activity and growth in employment as well. Also, it has claimed that Gujarat has become one of the key auto hubs in the country after Tata started producing Nano there.

Interestingly, Tata Nano has been at the centre of controversy from the very beginning. Despite completing a major part of the factory, Tata Motors couldn’t start production of the car at Singur in West Bengal. In recent times too, the small car was at the centre of the turmoil in Tata Group. Despite being the most affordable car in the world, Tata Nano couldn’t see the desired and much expected success in the country market. But, the automaker didn’t give up on this small car and now the Nano is receiving an all-electric powertrain.

tata nano genx side

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As we have already reported, the zero emission all-electric Tata Nano is being christened as Jayem Neo. The automaker hopes in its new guise the revolutionary car will be able to see boost in its sales.