Uttarakhand to earn Rs 100 cr revenue from Tata venture

Tata Motors has opened a new subsidiary company in Uttarakhand for the sale of its Ace trucks, a move that is expected to bring additional tax collection of Rs 100 crore to the state government.

The auto major, through Tata Motors Distribution Co Ltd, would now sell its new Ace mini trucks from Pantnagar, which will help the state government earn Rs 100 crore revenue through 12 per cent VAT. The total tax collection for the government through the new Pantnagar facility would now be Rs 200 crore, official sources said.

Top industry officials are interpreting the move as a gesture of goodwill by the auto giant, which was given 1,000 acre of prime agriculture land at Pantnagar for setting up the new manufacturing facility.

Significantly, the move comes at a time when Agriculture Minister Trivendra Singh Rawat and some small social groups are opposing the government’s move to allot 50 acres of more farmland to Tata Motors for housing purpose. “The opposition against Tata Motors is not justified because it is one company which has not only provided maximum employment to the local youth, but has also generated revenue for the state government,” commented a top government official. The official also said such kind of opposition against Tata Motors would be counterproductive.

“We want Tata Motors to set up its Nano project at Pantnagar. Moreover, we are expecting more investments in the state. Any type of opposition would spoil the atmosphere,” said the official.