The Hindu Business Line : AP to woo Nano

Hyderabad, Sept. 24 The Andhra Pradesh Government is ready to offer an investment-incentive to the tune of over Rs 300 crore besides land to woo Tata Motors for setting up manufacturing facility for Nano in the State.

“In a communication to us, Tata Motors said it wants to retrieve some part of its investment in the plant if it is to be located in the State. We are examining the extent to which we can go in this regard and the dialogue is on,” a State Government official told Business Line here on Wednesday.

He added that the State Government is ready to provide an incentive of Rs 250-300 crore and the modalities of which are being examined, he added.

This is being done to offset the likely loss in the event of the company pulling out of Singur in West Bengal.

Other States, including Karnataka and Maharashtra are also in the race to woo Tata to set up Nano plant in their States.

Andhra Pradesh had earlier offered 1,000 acres of land to Tata Motors for the Nano plant in Nellore District in the backdrop of the auto major’s plans to exit from Singur due to controversy over land acquisition.

The Government is also planning to do away with the cap of 1,000 acres and offer land according to the requirement of Tata Motors.

“An official communication from the Chief Minister, Dr Y.S. Rajashekara Reddy, on proposed investment incentive and provision of additional land is likely to be sent to Tata Motors in couple of days,” he said.

On the likelihood of the company accepting the offer, the official said there should be no surprise if the plant comes up in the State.

The proximity to Krishnapatnam port and presence of the Caparo Group which supplies auto ancillaries to Tata Motors might work in favour of Andhra Pradesh in deciding about the location of the plant, he added.