Tatas' small car project to get tax concession

The Tatas are going to get tax concession worth Rs 18,000 for every 1,00,000 units sold via its small car project. This was the incentive earlier offered by Uttranchal, which the West Bengal government matched to bring the project to Singur.

The Bengal government has offered a refund of VAT for 10 years and a Rs 200 crore loan at 1% for 20 years. It has also offered a concession in lease rent for a 645-acre plot. Tata Motors is to pay Rs 1 crore a year for the first five years.

Tata Motors will invest Rs 1,700 crore, of which, Rs 1,200 crore will be invested in the small car plant, while Rs 500 crore will go in the vendor park infrastructure.

Meanwhile, the Bengal government will earn Rs 850 crore in lease rent over 90 years and sees revenue income of Rs 400-450 crore a year in the long run.