Tata to set up mini Nano plant in Pantnagar

TATA Motors have conveyed to the Uttarakhand Government that they are planning to set up a small manufacturing plant for Nano in the state. This was disclosed by state Chief Secretary Indu Kumar Pande here on Friday. He also informed that the interim production of Nano will take place at the Pantnagar facility of Tata Motors where the mini truck, Ace, is being manufactured. Pande said: "Although the mother plant is being set up in Gujarat, they have conveyed that they are considering setting up a smaller plant here."

Uttarakhand has conceded to the request of Tata Motors to fix the lease rent rate for the existing facility, spread over 1,000 acres in Pantnagar, at Rs 1 per sq metre. This decision was taken at a Cabinet meeting held here on Friday morning. This was a long pending issue between the two parties ever since Tata Motors had established the mini truck manufacturing facility at Pantnagar.

Pande disclosed that the normal lease rent rate fixed by the state Government is Rs 5 per sq metre, but since Tata Motors is planning to set up a "mega" project, the Government has agreed to the demand. Tata Motors had been paying Rs 5 per sq metre till now.

He further stated that by offering the land at a lesser price the state Government will incur a revenue loss of Rs 1.5 crore per annum. "Tata Motors have conveyed that of their total production from this plant, 80 per cent of the sales will be done from here. This will yield Value Added Tax and other revenue benefits to the tune of Rs 200 crore for the state," he said.

Chief Minister B C Khanduri had stated earlier that limited production of Nano will take place in the state.

Ever since the Singur controversy started, Khanduri had been saying that Uttarakhand would be happy to welcome Tata Motors and that the state had an ideal environment for the production of the car.

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