Tata Nano a black spot on Gujarat Governance : Every Gujarati pays for every Nano rolled out.

Please see Tata Nano's deal that Gujarat Government offered them - you can calculate yourself

Rs. 9750 Cr loan given to tata at 0.1% interest for 20 years but this money has been borrowed at 7.25% interest by govt.
 
Assume that Nano will have Rs. 30,000 PROFIT for Tata (very unlikely but let us assume for calculations sake)

This means that Tata Motors will have to sell 32,50,000 cars in 20 years just to repay the loan principal but not make any profit.. But wait even if they repay the principal, the borrowed money and interest cost of borrowing for Gujarat govt will cross Rs. 30,000 crores.

If they have to sell 32 lakh 50 thousand cars in 20 years or say 1 lakh 60 thousand cars approx per year, they would still not be making profit..!!! So Tata Motors is doomed!!!

Wait a sec.. now Nano Sales have declined 85% in August and even last week 1 Nano caught fire in Chennai. In August on 1200 something Nano were sold.. So they can't even sell 1,60,000 Nanos per year and would they be able to pay the debt?

Add to it - cheap land(nearly free), Tax Holidays, subsidized electricity..

So overall considering that Nano is a failed car and this is lost money(unless someone puts a strong counter logical argument), we are bound to lose Rs. 40,000 crores on Nano.. or Rs. 6666 potential debt burden on each and every Gujarati (i.6 Crore Gujaratis).

Now even more worriesome is this. Tata only requested 2200 Crores and pledged this money to be invested in this project. So 9700 Crores loan at nearly zero percent interest means Tata would have used this public money to pay up its debts on other Tata companies? Why give 330% more then project cost when anyone who is in business just gets 50% of project cost today and that too after lot of hassle.

This money could have been spent on Education or Healthcare but NO - Govt wants to put this money on projects that will fail - any person with basic intelligence will figure this out..

Now look at other deals. Gift City - Rs. 1 token fee for 662 acres land (1655 Bigha) for 99 years (current value of 1 Bigha is Rs. 25 Lakhs) i.e 400 Cr land given for free + 9700 Cr govt investment and returns? This kind of deals is what is going to break the back of every Gujarati.

No wonder why Gujarat is today the state with most debt. We know we are going to be fine, our parents are also gong to be fine our kids will really feel the heat of this debt.. This is now seen in US how mounting debt is creating huge issues. Educated middle class do not have jobs, houses and have to live in shelters.

Gujarat which had surplus in its treasury nearly a decade ago now is reeling under huge public debt.