Business Standard

Maharashtra May Accept Fiat Demands

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BSCAL

In a bid to keep the Fiat-Premier team in Maharashtra, the state government may accept all the demands of Fiat Auto for its Rs 3,000 crore Palio car project in Ranjangaon near Pune including permission to develop the 200-acre project site for which the government would foot the bill.

Sources said since all the concessions sought by Fiat fell within the package that already exists for large projects, their demands could be met by the government.

Fiat had asked for a 14 year sales tax exemption to be extended to an independent auto ancillaries unit and auto tools complex from which Palio project would source some of its inputs. It also wanted a high tension power line in Ranjangoan to the project site.

 

A high level delegation of Fiat Spa, including its chief Paolo Canteralla, met chief minister Manohar Joshi on Tuesday to press their demands which also included treatment of wastes generated by the new project at government cost.

State industry secretary Yeshwant Bhave told PTI that Fiat's demand for developing the 200-acre project site itself instead of the Maharashtra Industrial Development Corporation (MIDC) would be discussed before committing on the issue.

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First Published: Jul 25 1997 | 12:00 AM IST

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