Business

Received Loan, Not Grant: Tata Motors Issues Statement Refuting Rahul Gandhi

NEWS WORLD INDIA | 0
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| December 1 , 2017 , 09:05 IST

Reacting to Congress Vice President’s charge that the Gujarat government under Narendra Modi gave undue favours of Rs 33,000 crores to Tata for its car manufacturing facility at Sanand, Tata Motors has come out with a statement saying it got Rs 584.8 crore as loan, and not as grant.

The statement says that the investor-friendly environment created by the Gujarat government encouraged Tata Motors to set up its manufacturing plant in Sanand, with a long-term vision to make it one of the leading automotive hubs, further enabling the state to contribute to the prosperity and growth of India.

"Given the scale of the project and its potential to drive growth in the state, the Gujarat government offered Tata Motors an incentive package in the form of a loan (not a grant), which is to be repaid to the state government as per the loan agreement executed," said the statement. 

The Congress Vice President had on November 29 attacked PM Narendra Modi for giving away Rs 33,000 crores to Tata motors for their Tata Nano plant. Addressing a public meeting in Gujarat’s Visavadar he said “UPA government gave Rs 35,000 crores to run MNREGA across India while Modi gave Rs 33,000 crores to run Tata Nano alone."