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Tata Building Jaguars At Nano Manufacturing Plant In Gujarat?
Tata Motors is said to be manufacturing Jaguars at its Sanand manufacturing facility which was originally set up to churn out Nano small cars. At least, that's what Shankersinh Vaghela, leader of opposition in Gujarat assembly has accused Tata Motors of.
Vaghela raised the issue on Tuesday, saying Tata had stopped producing the Nano at its Sanand facility and was manufacturing Jaguar luxury cars instead in the facility.
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"Tata Motors is not even manufacturing the tyres of Nano in Sanand where the state government gave away the company land meant for agriculture university. Tata now manufactures luxury Jaguar car there," ET quotes Vaghela has having said.
Vaghela also accused the Gujarat government of providing financial benefits to the automaker which should ideally be stopped since these were extended to the company only for the production of the Nano and not luxury cars.
"Under a state support agreement (SSA) signed with Tata Motors in October 2008, the government had approved a provisional soft loan of Rs 2138.85 crore to the company at an interest rate of just 0.10% on the total investment for 20 years from the day it starts manufacturing. Tata Motors was eligible for the loan money proportionate to the gross value-added tax (VAT) it paid from the date of production," states the ET report.
It is no secret that Tata Nano has been performing poorely and as a result the Sanand manufacturing plant is heavity underused. But it seems unlikely that a facility meant to produce the Nano can be modified very easily and in such a short period of time to manufacture luxury cars.
Tata Motors is yet to respond to this acquisition.
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