Uttaranchal offers cheap land for Tatas' small car project

Tax incentives are not the only sops that attract big companies like Tata Motors to set up their new units in Uttaranchal.

Reports say Tata Motors was allotted 1,000 acres of prime land at the Pantnagar industrial estate at throwaway prices in the hope that the company would set up its Rs 1 lakh car project in Uttaranchal only.

Tata Motors was given land at just Rs 125 per square metre at the estate, which has attracted investments from big companies like Dabur and Nestle also.

Cabinet approval had been given in this regard, the source said. But that was not the end of it. Even the stamp duty of Rs 5.18 crore was waived for the auto giant.

But instead of setting up its project in Uttaranchal, Tata Motors chose West Bengal to set up the manufacturing unit. However, the company has promised to invest Rs 2,500 crore at its facility at Pantnagar to produce Ace trucks.

Nevertheless, the Uttaranchal government's hopes have been rekindled by reports that Tata Motors' plan has come under fire from the opposition parties over the issue of land acquisition in West Bengal. "We are still hoping that Tata Motors might come back to us," a top official said.

Chief Minister N D Tiwari, who is taking a lot of interest in the deal, has assured Tata Motors officials that the government would provide best infrastructure facilities to them.

"We have given the land to Tata Motors because the firm is making huge investments," said the government official.

Meanwhile, other companies like Hero Honda, which is investing Rs 1,900 crore at its new facility at the Haridwar industrial estate, is also looking for a heavy rebate in the price of prime land there. Hero Honda is purchasing 300 acres for its Haridwar unit.