Business Line reports on how 'Tata chose Singur as base for Nano plants' :
A comprehensive package of incentives — subsidy on land, concessional power, a soft loan and tax paybacks — to match the benefits that Tata Motors would have got in Uttarakhand or Himachal Pradesh, was what got it to choose Singur in West Bengal for making its low-cost car Nano.
And these are the benefits which had been given by Uttarakhand/Himachal Pradesh:
(a) 100% exemption from Excise Duty for 10 years.
(b) 100% exemption from Corporate Income Tax for first 5 years and 30%
exemption from Corporate Income Tax for next 5 years.
Excerpts from the WBIDC's agreement between the Tata Motors Ltd. and West Bengal Government, governing the long-term lease of land in Singur :
The terms of lease to TML for the 645.67 acres of land for the mother plant are described below. The lease rental payable per year per acre by the vendors will be Rs. 8000/- per acre for the first 45 (forty five) years and Rs. 16000/- per acre for the next 45 (forty five) years. The initial lease tenure will be 90 years. On expiry of 90 years, the lease terms will be fixed on mutually agreed terms at that point of time.
So, whats your take on this?? Tata has been nicely pampered into chosing Singur as its final destination for making the people's car Tata Nano. Keep the comments coming in...
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