Tata Motors to invest Rs 2,246 cr in phase I of Nano project
Tata Motors Ltd has said it will make an investment of Rs 2,246 crore in the first phase of Nano car project in Gujarat, while shifting and relocation expenses will cost an additional Rs 650 crore.autos Updated: Jan 20, 2009 21:52 IST
Tata Motors Ltd (TML) has said it will make an investment of Rs 2,246 crore in the first phase of Nano car project in Gujarat, while shifting and relocation expenses will cost an additional Rs 650 crore.
A Government Resolution (GR) passed by the state government on January 1 regarding the Nano project and incentives it offered to lure the auto makers to Gujarat also talks about the details of various components of investments to be made by TML.
As per the GR details, the Tatas will not make any investment in the 1,100-acre land provided by the government in the first phase.
TML will pay land price to the government in eight annual instalments, which will begin only after production starts at the plant.
The real investment to be made is Rs 614 crore in erecting the plant, Rs 1,189 crore in plants and machinery, Rs 199 crore in product development, Rs 135 crore in toolings, Rs 87 crore in IT and utilities and Rs 22 crore in others.
In total, TML will invest Rs 2,246 crore apart from Rs 650 crore as shifting and relocation expenses.
"The TML phase I investment is estimated to cater to the manufacture of 2.5 lakh Nano cars per annum, expandable to 3.5 lakh Nano cars per annum," said the GR.
Besides this, TML has told the government that the company would encourage vendors to set up their facilities in the area surrounding the Nano plant, for the supply of products and servi0ces to the project.