Deal with the Tatas made public at last...

The state government finally made a certain portion of the deal signed with the Tata Motors public on Monday. Parts of the deal have been posted on the official website of the West Bengal Industrial Development Corporation (WBIDC), which was signed on March 7, 2007. contents of the deal

Incentive package by other states: The incentive package given to Tata Motors by Uttarakhand/Himachal Pradesh consists of 100 per cent exemption from Excise Duty for 10 years. And 100 per cent exemption from Corporate Income Tax for first 5 years with 30 per cent exemption from Corporate Income Tax for next five years.

Demand of Tata Motors: The Tata Motors showed interest in locating the plant in West Bengal, provided the West Bengal government gave Fiscal incentive equivalent to the value of total incentives it would have received by locating the plant in Uttarakhand/Himachal Pradesh. The “Government of West Bengal offered to match the financial incentives in equivalent terms and invited TML to set up the Small Car plant in West Bengal”.

Land acquired: The WBIDC was in possession of 997.11 acres of land, which had been acquired under the Land Acquisition Act. Of this, an area admeasuring 645.67 acres will be leased to Tata Motors for setting up the Automobile Project including the small car plant, while an area admeasuring 290 acres will be leased to the vendors of this Automobile Project approved by Tata Motors — ancillary and component manufacturing units.

Lease Amount: The land will be given on a 90 year lease with an annual lease rental of Rs 1 crore per year for first 5 years with an increase at the rate of 25 per cent after every 5 years till 30 years.

Loan by the government: The state government has also provided a loan of 200 crores to Tata Motors at the rate of 1 per cent interest per year repayable in 5 equal annual installments starting from the 21st year from the date of disbursement of loan. The loan will be disbursed within 60 days of signing the agreement.

Electricity: The government also promised to provide electricity for the project at Rs 3 per KWH.