Tata promises more investment in Uttarakhand

After having inversted about Rs 1,000 crore (Rs 10 billion) in Uttarakhand, the Tata Group's chairman, Ratan Tata, promised on Monday expansion in the hill state.

Amid concern that Tata Motors was gradually lowering the production of Nano cars from its Pantnagar factory, he said: "We are happy to be in Uttarakhand. We will expand more in due course of time."

He, however, expressed concern over the coming dilution of central tax incentives for investment in hill states.

"I think after the dilution of these taxes, it will have an impact on industry coming to the state. But we are not doing any rethinking and we are happy to be here," he said.

The state government has been lobbying the central government for continuation of these incentives.

The Group had put Rs 1,000 crore (Rs 10 billion) into the Pantnagar manufacturing facility, from where the first Nano car rolled out last year after the fiasco in Bengal's Singur.

Earlier, Chief Minister Ramesh Pokhriyal Nishank said he had been assured by Tata himself that the production at Pantnagar would continue. Tata said the group wanted to diversify into agro-industry. "We will see what kind of opportunities we get," he said.

Image: Ratan Tata