'TATA Motors permitted to set up unit at Dharwad'

By Staff
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Google Oneindia News

Hubli, Sep 1: Karnataka Revenue Minister Jagadish Shettar today said the TATA Motors had been given permission to set up an automotive manufacturing unit at Dharwad.

Addressing a press conference here, Mr Shettar said the Cabinet had given a go-ahead to TATA Motors after asking them to comply with certain conditions.

The conditions were that the company had to reserve 80 per cent of both direct and indirect jobs to Kannadigas preferably from North Karnataka region and the government would withdraw the permission if the unit did not commence operations in the stipulated period.

Mr Shettar said the company would set up its unit near the present TELCO unit at Dharwad in three phases to manufacture luxury buses, small buses and light commercial vehicles and there would be no further land acquisition from farmers.

''Whatever additional land required would be given to the company from the adjoining Belur industrial estate, where KIADB has sufficient land'', he added, saying there was no reason for the farmers to worry over land acquisition.

On concessions sanctioned, the Minister said a stamp duty concession to the tune of 75 per cent was accorded and Value Added Tax (VAT) was deferred for 11 years though the company requisitioned it for 18 years.

The VAT had to be paid back with one per cent interest, he added.

Mr Shettar said up gradation of airport road at Hubli would be taken up at a cost of Rs 11.9 crore instead of Rs Nine crore proposed earlier. All the tenders received for the purpose were above proposed rate and the center would be contributing Rs 4.5 crore for the up gradation work which would be taken up soon. He said along with the road work, the government has sanctioned Rs 50 Crore for water supply pipe replacement on it and the work would commence in another 15 days.

Mr Shettar said the government has extended time till December 31, 2007 for all land owners and farmers losing land under Inaam abolition Act, to file their applications for re-registration of land in their name.

On the relief to flood affected in the state, Mr Shettar said compensation has been paid to the kin of the deceased in the floods besides to the owners of houses collapsed. Only survey of crop loss was pending. The government would be releasing another 120 crore towards flood relief and has also sought Rs 1500 crore from the center.

An all-party delegation would also be taken to the center for flood relief and the appointment for the same from PMO was awaited.

Replying to a question, Mr Shettar said his party (BJP) has authorised the district units to go for alliance with other political parties except the Congress for the forthcoming elections to municipal bodies in the state.

UNI

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