anjan_c2007

Tata Nano exits Singur,

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Units will stay in Singur?? Didnt hear that and dont think that would happen. Now that the mother plant is shifting, so will the vendors. Being in Singur would incur higher transportation costs for the verndors to supply to any of the existing plants (except Jamshedpur where nano is not being produced)

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The Times of India carried an interesting news item today. It says "Gujaratis gave milk and Parsis added sugar"

The story is about the first boatload of Parsis landing at Gujarat some centuries ago and the then King of Gujarat disallowing them entry into his empire.

The leader of the boat people quipped,"Give me a cup of milk and I'll add sugar to it. By adding sugar the milk gets sweetened not losing its identity even a bit."

The King was impressed and changed his decision.

Thats what the Tatas will do to Gujarat- The Nano's entry will sweeten the congenial industrial climate in the industrialised state.

Lesson for West Bengal- they must learn to do business and allow others to do business to prosper.

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Gujarat Govt. is offering  lot of sops to Tata in addition  to 1100acres of land on a 99 yrs. lease. The rent is somewhere around 1 crore/yr.

Saw on  TV, locals were welcoming Tata, opposite to the treatment which was meted out to them in Singur.

In a press conference, Ratan Tata said, it was about "M", one turned out bad(Mamata) & other good(Modi).

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It seems that Tata has helped Gujarat's farmers long back and the farmers there are now happy that the land values will increase and lot of employment opportunities. So I believe that Tata will not face any problems.

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Gujarat Govt. is offering  lot of sops to Tata in addition  to 1100acres of land on a 99 yrs. lease. The rent is somewhere around 1 crore/yr.
Saw on  TV' date=' locals were welcoming Tata, opposite to the treatment which was meted out to them in Singur.
In a press conference, Ratan Tata said, it was about "M", one turned out bad(Mamata) & other good(Modi).
[/quote']

I read they are BUYING that land. Was surprised myself but thats what was said in the press con too yday. SIngur had a 1 Cr/year lease agreement (Tatas might still be using that land for something if the environment is conducive). There are no details of the sops provided except that as an entire package they match those given by WB

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Either Mr Ratan Tata or Mr Modi can give the exact answer.

But some math - they bought the 1100 acres of land at 3.5 lakh per acre, comes out to 3.85 crores. In singur, they had leased the land for 1 cr/year.

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well gujarat got the nano project and ratan tata was all praises bout narender modi the cm of gujarat !!! well narender modi is really offering the best climate for industrial development in our country !!!!

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Well CM Modi said that land will be sold to Tata at market price but at only 3.5lakh per Acre, its not the MV coz the value of sanand is definately more...

Well Tata was happy to come to gujarat and was happy with the Location of plant, though Modi is not that man who gave all benefits but still he gave some though less than others but that was only for 1st time, before that he never gave those sops to anyone...But as Gujarat is peaceful and is good for industrialisation, so Mr. tata declared the plant there rather than too much negotiating...

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Oh he said the 3.5 lakhs. I didnt know that. Surely not the market price. If Singur was double figures, Sanand would definitely be higher.

And after Singur, I'm sure peace is one thing at top priority for the Tatas.

Just one more question: How come they dont incur losses on fixed assets? I understand that the machinery will be shifted but the construction?

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They said the losses wont be much and thus will not affect the financial statements of the company if i recall correctly.

Also, there was some news about AP giving them 300 Crores as compensation for the loss they incur in Singur and Tatas said it would be in excess of 700 Crores. Hmmm. Some confusion. May be I have got my figures wrong.

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Well i dont know about figures but AP did gave offers for compensation of loos and costs for relocation of factory...But then even AP doesnt seems to be as secured and peaceful as Gujarat...and mainly the location os Sanand is really good seeing that transportation cost can be reduced to an extent...

Also Construction costs is not as much as costs of machineries and Factories are constructed at lesser cost than other Commercial/Residential projects...

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From what I heard in initial estimates, Tata speculated a net loss of over 1500cr. incurred due to relocation.

Gujarat Govt. is certainly giving them bucket full of sops, including waiver of taxes  & token money as lease contract.

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1500 Crores was their investment. The losses were expected to be around 500 Crores after the machinery was moved out (may be this included the cost of relocation of machinery too). and finally it went upto 700 Crores. And Mr. Tata saying that the package as a whole was better than what they were offered in Singur shows there are tax sops too. Some free electricity and free water might be included.

Karnataka government is not too pleased about the decision as nothing was communicated to them till the press con. They were still in the process of making proposals.

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