Tata Motors, which has already started interim production of Nano car from Pantnagar in Uttarakhand, is also planning to set up a small permanent production unit of the world's cheapest car in the industrial town. "Tata Motors officials have conveyed to us that they are considering to set up a small permanent production unit of Nano in Pantnagar," Chief Secretary I K Pande said. Although Tata Motors decided to set up the mother plant of Nano at Sanand, Gujarat, its interim production has already started in Pantnagar, where the auto major produces Ace mini trucks. However, Pande added that the company officials have not yet indicated that they would set up a new unit or convert the interim unit to permanent production facility for Nano. Meanwhile, when contacted the Tata Motors spokesperson said, "It is Tata Motors's view that even after the mother plant at Sanand becomes operational Tata Motors will continue to manufacture a certain volume of the Nano at Pantnagar. We do not have any other information to share". The Sanand plant will have the capacity to produce 2.5 lakh cars initially expandable up to 5 lakh cars. Pande further added that the state cabinet also gave its approval to provide lease rent concession to Tata Motors for 1,000 acres of land, where the company is making ace trucks. "Tata Motors will pay the lease rent for 1,000 acres of land at the rate of Re one per square meter," he said, adding the lease rent concession was being provided to the company as it has set up a mega project in the hill state.
Following the approval of the proposal, Tata Motors would get a concession of Rs 1.5 crore per annum in the lease rent, he said. Normally the leases rent from industries are charged at the rate of Rs 5 per sqmt, Pande said. Pande said the company officials have given assurance to set up a depot and sell 80 per cent of vehicles from Uttarakhand, so that the hill state would earn a revenue of Rs 200 crore per annum as VAT and other taxes. Tata Motors' shifted its ultra-cheap Nana car project to Sanand, Gujarat following protests by farmers led by opposition leader Mamta Banerjee.