After Rahul’s barb, Tata Motors says received loan not grant from Gujarat government
Rahul Gandhi, who has started a ‘one question a day’ series on Twitter, asked Prime Minister Narendra Modi ‘why the people of Gujarat should pay the price for his financial mismanagement and publicity’.india Updated: Dec 01, 2017 09:40 IST
After Congress vice-president Rahul Gandhi alleged that the Gujarat government doled out favours to Tata Motors, the automobile company said it received a loan of Rs 584.8 crore and not a “grant” from the government to set up a factory in the state.
“The investor friendly environment created by the Government of Gujarat (GoG) encouraged Tata Motors to set up its manufacturing plant in Sanand, with a long-term vision to make it one of the leading automotive hubs, further enabling Gujarat to contribute to the prosperity and growth of India,” the automobile major said in a statement on Thursday.
“Given the scale of the project and its potential to drive growth in the state, the GoG offered Tata Motors an incentive package in the form of a loan (not a grant), which is to be repaid to the state government as per the Loan Agreement executed. The loan given to Tata Motors from the GoG is from taxes paid by Tata Motors. Until now, the state government has given a loan of Rs 584.8 crore to Tata Motors.”
“Since the establishment of the Sanand plant, there has been a spurt in economic activity and growth in employment (direct and indirect) within the state, making Gujarat one of the key auto hubs within the country with huge employment generation,” the statement said.
“The project has also given rise to capital investments which has further resulted in the development of incidental industrial activities and employment generation in small and medium scale industries.”
Rahul, who has started a “one question a day” series on Twitter for Prime Minister Narendra Modi, asked him, “why the people of Gujarat should pay the price for his financial mismanagement and publicity.” “My second question to Prime Minister on the state of affairs in Gujarat. In 1995, total debt on Gujarat was Rs 9,183 crore. In 2017, the total debt on Gujarat was Rs 2.41 lakh crore. That means a debt of Rs 37,000 on every Gujarati. Why should the people of Gujarat pay up the price for your financial mismanagement and publicity?” Gandhi asked.
First Published: Dec 01, 2017 09:37 IST