Date:16/10/2008 URL: http://www.thehindu.com/2008/10/16/stories/2008101659421300.htm

National

Nano land price fixed at Rs. 400 crore

Manas Dasgupta

GANDHINAGAR: The Gujarat Cabinet on Wednesday fixed the price of land allocated for the Tatas’ Nano small car project in Sanand taluk in Ahmedabad district at Rs. 400.65 crore.

The meeting, under the chairmanship of Chief Minister Narendra Modi, decided on a price of Rs. 900 per square metre for the 1,100 acres allocated for the project, relocated from Singur in West Bengal.

In case the Tatas made the payment in instalments, an eight per cent compound interest would be charged from the date of the company taking possession of the land, said Cabinet spokesman and Health Minister Jaynarayan Vyas. The land price was worked out by district and State-level valuation committees after an extensive survey of the area to finalise the market rate.

Project soon

Work on the Rs. 2,000-crore project is expected to start soon to manufacture about three lakh Nano cars annually; in the second phase the production will be increased to five lakh.