Tata Motors to set up unit in Dharwad
Business Standard — June 23, 2006

The Karnataka government has come forward to offer all help to Tata Motors to set up a car-manufacturing unit at Dharwad. Deputy chief minister B S Yediyurappa announced this after discussing the proposal with senior officials. Tata Motors has decided to set up a unit at the Belur industrial area in Dharwad with an investment of Rs 976 crore. It has already acquired 600 acres of land and has sought some concessions from the government.

The company has sought concessions from value-added tax (VAT) for its product or permission to repay the amount in 18 years. Besides, it has sought 200 acres of additional land and exemption from entry tax. Yediyurappa said the government was responding positively to the demands of Tata Motors. He added that the government would provide the concessions that have been given to Germany's Volkswagen.

The manufacturing unit is expected to provide direct employment to 1,400 people and indirect employment to 4,700 people. The car manufactured at the unit will cost Rs 1 lakh. The Dharwad unit will have the capacity to manufacture 10 lakh cars per year. Dharwad is equidistant from Pune and Bangalore, thus providing the company the benefit of marketing in both the cities.