GANDHINAGAR: Shankersinh Vaghela , leader of opposition in Gujarat assembly , created quite a flutter on Tuesday when he claimed that Tata Motors has stopped making small car Nano in Sanand and is instead manufacturing luxury car Jaguar in the same plant.

"Tata Motors is not even manufacturing the tyres of Nano in Sanand where the state government gave away the company land meant for agriculture university. Tata now manufactures luxury Jaguar car there," Vaghela said, while participating in the debate over Governor's speech on Tuesday.

Despite this, said Vaghela, the government has continued all financial and other benefits to Tata Motors.

Under a state support agreement (SSA) signed with Tata Motors in October 2008, the government had approved a provisional soft loan of Rs 2138.85 crore to the company at an interest rate of just 0.10% on the total investment for 20 years from the day it starts manufacturing. Tata Motors was eligible for the loan money proportionate to the gross value-added tax (VAT) it paid from the date of production.

In the industrial policy announced in 2009, the government had also given mega project status to Tata Motors, Ford Motors, Maruti Suzuki and a textile company.

Vaghela also charged the state government of furnishing false figures on investments through Vibrant Gujarat summits. He also criticized the government's poor performance in education, health and other sectors.