Big Scam With Small Car

Tata Motors’ Nano plant at Sanand in Gujarat is lying idle. Tata Motors has utilised just a fraction of the Rs 2000 crore facility and in whole of the last year, there have only been two months when Tata Motors utilised more than 25 percent of its installed capacity at Sanand. In fact for the first time this April, the company’s total production of the Nano fell below 1,000 units utilising just 4.5 percent of the installed capacity of 20,833 units per month or 2.5 lakh units per annum (CNBC-TV18 report). This is the state of the much touted Nano, despite months of advertising, heavy discounting and offering a first of its kind Credit Card facility to boost Nano sales.

Modi With Ratan Tata And Nano At Sanand Plant
Modi With Ratan Tata And Nano At Sanand Plant

So how did it all begin? Tata built a huge infrastructure for Nano in Singur, West Bengal, which faced tremendous resistance from the locals backed by Mamata Banerjee’s Trinamool. The farmers alleged that their fertile land was forcefully grabbed by the ruling left front. In November 2008, Gujarat CM Narendra Modi offered Tata Motors an eye-popping deal,  a deal that convinced the auto giant to choose Gujarat over other states as the alternative for the Tata Nano’s plant. The incentive was Rs 9,570 crore soft loan over 20 years — close to 25 per cent of Gujarat’s annual budget. Tata Motors will repay the loan in 20 years, at 0.1 per cent interest rate and will repay the land price in eight equal annual installments. That’s not all. The state government also provided four-lane road connectivity and exempted Tatas from electricity duty, registration and transfer charges of land. The state also put up a waste disposal plant, supplied natural gas through a pipeline and provided 100 acres of land near Ahmedabad for a township. As if so much was not enough, Modi used some more public money to give Mr Tata free publicity for his Nano car when Modi put up hoardings with his and Mr Tata’s picture with Nano all over Gujarat.

Narendra Modi Embracing Ratan Tata
Narendra Modi Embracing Ratan Tata

This is the deal that the Gujarat government did not want to make public. Despite several RTI applications, the Government refused to divulge information on the pretext that it was classified information as it contained ‘trade secrets’ of Tata Motors. Unfortunately for them, details of this deal got leaked out in the form of a Cabinet note by Industries Department Deputy Secretary Shobhna Desai and now an embarrassed CMO of the Industries Department has initiated an internal inquiry to find out how the details of the deal went public. They also don’t want to tell the public that all the promises of employment to locals might as well be forgotten now that Nano is in a free fall.

However the real deal is still in the dark. Besides appreciating Modi’s investment friendly policies and telling the nation that he is PM material, one might wonder what else Mr Ratan Tata had to dish out to get this dream deal which might have costed the state in excess of Rs.30,000 crores for a mere 2000 crores!

By any standards Rs.30,000 crores of public money drained out for a private project whose total worth is less than one-tenth of the money spent has no parallel even in a very corrupt India.


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13 Comments on "Big Scam With Small Car"

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Rakesh Garg
Yesterday I had written in one the earlier misguiding article of u hate NAMO that more u hate NAMO and more we will love NAMO , more u write against NAMO and MORE we will LOVE NAMO , meaning indirectly or directly u r helping us come NEAR NAMO. THAT’s IT. So guys of hate NAMO compain go on hating NAMO please because u r people of LOW mentality with narrow-minded thinking narrow-hearted vision. U cannot LOVE this country as u r living in some garbage slumber with garbage thoughts repeatedly being RAPED by congress and samajwadi party. So chill… Read more »
Renganathan Iyengar

I do not know who is cleaverer of the Two – Ratan Tata or Narendra Modi. It is not uncommon for Chief Ministers to give a red carpet welcome to tatas and NM seems to have utilised it well, at the cost of public money ?? and that too at this scale of thousands of crored? One thing is certain – People are the fools !

Harsh Shah
There is one old proverb: “If you want to make a person drunkard, give him first glass of liquor for FREE. He will be your regular customer.” The same logic applies here also. Afte ther Nano plant was set up, there was so much publicity of Gujarat as an Investment Friendly State. The result was Ford and Peugeot are investing in Sanand only. Maruti Suzuki is also setting up a plant near Mehsana, Gujarat.(It’s only plant outside Haryana.) Hero is contemplating to invest in Gujarat. GM has expanded it’s plant. Auto ancilliary units got a new and fresh breath. And… Read more »
Ashish Ranjan

well written piece. congrats for exposing Tata and Modi.

Gautam Pandey

ITS a kind of frustration which is revealed here only…look into the state run govt how misussing public fund which are pilled up in sc…

Alex D Mello

I was an employee of Tata group with lots of respect for Ratan Tata who is a very compassionate man, cannot expect such things happen to the people of Gujarat. still it’s called Vibrant at the cost of poor.

Sunil Issar

The mind boggles to see the Tata name associated with such a scale of alleged corruption. The entire Tata USP of integrity and high moral standards would now be exposed. Can’t the Tata’s use the plant for manufacturing other motor vehicles if the Nano is not a commercial success.

Mahendra Sharma

Having such website itself is insulting to Gujarat.
If they think things are wrong, they should take legal approach rather than publicly writing useless blogs.
Giving a name of Truth of GUjarat itself need a defamation action from public of gujarat because that ruins the dignity of state.

Kenil Kotak

TATA which is one of the best company and known for its ethics and trust.
Gujarat which is one of the fastest growing state.
Narendra Modi one of the greatest leader who has capacity to lead India and make it number 1 country in the world as he made Gujarat no 1 state in India…

do you guys really think suck websites and such stupid articles can stop them?

shame on you guys..

Modi we are with you…

Hasmukh Kacha

it is due to our economic policy & now the result of the labour policy also ;;;;;;;;;;;;;;;when the law act aginst nature:s justice ;;;;;;;;;

Chirag Shah

It’s Sad to have such a growth at people’s Loss

Syed Munnaf

fully scam and scams state where our Grt feku master is cm congratulations to the Gujarat people for voting corrupt cm twice