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Aapdi Nano: Gujarat CM Narendra Modi (left) successfully convinced Ratan Tata to manufacture the small car in Sanand. file pic |
Tata Motors will get 20 years from the commencement of the project to repay the amount at an interest rate of 0.1 per cent.
The amount will be repaid by adjusting value added tax dues of the company, the sources said.
The company would use the fund to build a township and a transport nagar near the plant location in Charodi village near Sanand to meet the logistics support needed for the project.
Arjun Mothwadia, former leader of the opposition in the state assembly, said the deal had been approved by both sides, though it was yet to be announced.
The government had also pledged to provide 100 acres to Tata to develop the proposed township.
However, Tata Motors officials said the total amount was an aggregate of "various concessions", including the 100 acres, stamp duty exemptions and concessional power tariff.
Tata Motors last month shifted out its Nano plant from Singur, West Bengal, to Sanand following protests by Trinamool Congress-led farmers against the project.
