Uttarakhand CM says state open to helping Tatas

NANO GETS A STATE WELCOME

Sensing that Tata Motors could shift its Nano project to Uttarakhand, Chief Minister B C Khanduri today reiterated that his government was ready to extend all help to the auto giant in case it sets up the car plant at Pantnagar.

But Khanduri made it clear that he would not send a formal invitation to Tata Motors in this regard.

“Let the proposal comes from Tata Motors. We will sit and sort out all issues,” Khanduri told reporters here.

Top officials told Business Standard that no formal proposal regarding the Nano plant has come so far to the state.

Khanduri also tried to entice Tata Motors stating that the company must take benefits of the heavy sops available in the state in the wake of Central Industrial Package (CIP) 2003.

“The company can take all the tax benefits which are available in Uttarakhand,” he said.

The Chief Minister also said informal talks at the bureaucratic level were on between the state government and the company over the Nano project.

Chief Secretary Indu Kumar Pande also confirmed that he today held talks with top Tata Motors officials but said the company gave no commitment.

Khanduri’s comments came a day after Tata Motors suspended its work at Singur car plant and said it was looking for other sites to make the world’s cheapest car.

On being asked as to why Uttarakhand so far has not settled the issue related to concessions on lease rent as well as land sought by Tata Motors at Pantnagar, the Chief Minister said all the issues will be settled.

The state government has agreed in principle to allot 50 acres of more land to the auto giant at Pantnagar but has avoided the final decision.

At present only 50 acres of land is available with Pantnagar Agriculture University and can be given to Tata motors, which is seeking 100 acres of land for housing purpose.

The company is also demanding that the lease rent for its 1000 acres industrial plot at Pantnagar for Ace truck manufacturing facility be lowered to Rs 1 per sq meter from the present rate of Rs 5.

With the company now facing problem at Singur, there was speculation that it might shift the Nano project to the hill state in case the deadlock lingers on.