Tatas to get 1,100 acres in Sanand for Rs 400 cr

The Gujarat Cabinet today approved a proposal to allot 1,100 acres of land to Tata Motors at Rs 900 per square metre, or Rs 36.42 lakh per acre, for setting up the Nano plant at Northcotepura near Sanand.

This price is slightly higher than the prevailing market rate and the Tatas will have to shell out Rs 400.65 crore for the land, which, according to government sources, they have already taken possession of.

The state government has offered the Tatas a provision to make deferred payments on which the company will have to pay a compound interest of 8 per cent per annum.

According to market sources, the prevalent land prices in the region are hovering around Rs 32 lakh per acre. As per the state government’s ready reckoner on land prices, in and around Sanand, the rates for commercial purpose is Rs 600 per square metre, industrial use Rs 520 per square metre and residential use Rs 400 per square metre.

The land prices in the region have zoomed by around 20 per cent after Tata Motors made the announcement to relocate its plant to Sanand from Singur in West Bengal, according to city-based realtors.

Meanwhile, the state government has decided to award Rs 1,100 per square metre to farmers whose land has been acquired to build a four-lane approach road to the proposed factory.

A delegation led by local MLA Kama Rathod, erstwhile prince of Sanand Jaishivsinh Vaghela and industrialist Ravubha Vaghela met Chief Minister Narendra Modi to request him to ensure the best possible returns to farmers whose land has been acquired. “The CM has assured us that no injustice will be meted out to anybody,” said Ravubha Vaghela.

Tata Motors, which is planning to organise a massive function at the site to mark the bhoomipujan ceremony, today deputed teams to start mapping and landscaping at the factory site.