Electricty and stamp duty, registration fee waiver under consideration; GIDC to spend Rs 500cr to create infrastructure.
After managing to woo Tata Motors to relocate its plant to Gujarat, the state government is currently working round-the-clock on various incentives to be offered to the company. Gujarat government is likely to offer a series of sops and exemptions, including deferred payment for land acquistion, electricity duty and stamp duty as well as registration fee waiver.
On Tuesday, Gujarat government announced to provide 1,100 acres of land in Sanand taluka of Ahmedabad district to Tata Motors at market prices. It is learnt that as per the state support agreement inked with Tata Motors yesterday, Gujarat government has agreed to offer deferred payment facility to the company for land acquired for Nano plant.
However, the basis on which the land is to be offered to the company is yet to be worked out. While on one hand market prices of land in Sanand are quite higher, one the other hand the newly declared Jantri (ready reckoner) has fixed the land price of Rs 600 sq. mt for commercial, Rs 520 sq. mt for industrial and Rs 400 per sq. mt for residential purposes. Apart from this, Ahmedabad collector has proposed a price of Rs 1,100 per sq. mt for land acquired for four lane road project. The road project is for providing connectivity to Tata's Nano plant.
If the government provides the land as per new Jantri rates, Tatas may have to pay Rs 200 crore to the state government, said government officials. However, government is still working on the price formula for the land to be given to Nano plant. Both industries and revenue department officials on Wednesday held marathon discussions to carve out sops and incentives for the company.
Apart from deferred payment facility, various other sops and reliefs are likely to be given to Tata Motors. Stamp duty and registration fee waiver and electricity duty exemption are also under consideration of the state government. A formula is being worked out to provide value added tax (VAT) relief to company.
Interestingly, Nano project site falls under Dedicated Freight Corridor (DFC). Gujarat government plans to offer series of concessions and incentives to the projects coming up in DFC area. Nano plant also has locational advantages as the site is located in Ahmedabad-Dholera Special Investment Region (SIR).