While the Uttarakhand government is adopting a cautious approach towards concessions on lease rent as well as more land to Tata Motors [Get Quote] at Pantnagar, it has now agreed in principle to allot 50 acres more to the auto giant even as suspense continues over the Nano project being shifted to the hill state.

Top officials said only 50 acres of land is available at present and can be given to Tata Motors, which is seeking 100 acres for housing purposes. However, they said a final decision was yet to be taken in this regard.

Last week, a high-level meeting presided over by Chief Secretary I K Pande took no decision on the demands of the auto major and instead left it to the discretion of Chief Minister B C Khanduri.

The company is also demanding that the lease rent for its 1,000 acre industrial plot at Pantnagar for the Ace truck manufacturing facility be lowered to Re 1 per sq metre from the present rate of Rs 5. On this issue, officials said the government would consider the demand sympathetically.

Tata Motors was allotted 1,000 acres of prime agriculture land at the Pantnagar industrial estate in the hope that the company would set up its dream Nano project in the hill state.

With the company now facing problem at Singur, there were indications that it might shift the Nano project to the hill state in case the deadlock lingers.

But top officials here have maintained a silence over the company's B Plan to shift the Nano project to Pantnagar.

"We cannot say anything on Nano. All depends on the company's approach," said a source close to the chief minister.

Significantly, the Uttarakhand government has already expressed its readiness to provide all the facilities to the company in case it shifts its Nano project to Pantnagar industrial estate.

Tata Motors is producing its 75 ton Ace vehicles from its manufacturing plant at Pantnagar in Kumaon region where it has invested Rs 1,000 crore. The company was allotted 1,000 acres of land at from the kitty of Pantnagar Agriculture University. At present, Tata Motors' plant produces 225,000 Ace vehicles every year at Pantnagar.

Nearly 63 ancillary units of Tata Motors have also set shops in the industrial estate with an investment of Rs 900 crore.