On the directive of the state government, the WBIDC acquired 1,006.45 acres of land at Singur, of which it leased out 645.67 acres to Tata Motors'. A portion of the remaining land, 190.44 acres, was leased out to 30 vendors of the TML. Another 70.78 acres were waterbodies and land meant for internal roads, sub-stations etc.

The corporation leased the land to TML for a period of 90 years at a value of Rs 96.72 crore. As per government directive for long-term leases, the lessee (Tata Motors in this case) should pay 95 per cent of the market value of the land as one term premium (salami) on the commencement of the lease. An annual rent at the rate of 0.3 per cent of the market value of the land would also have to be paid.

"The present value of aggregate of premium (Rs 91.88 crore) and cumulative annual lease rent (Rs 2.85 crore) comes to Rs 94.73 crore, at a discount factor of 10 per cent. Against this, the present value of cumulative lease rent of Rs 855.75 crore payable by TML over 90 years works out to Rs 18.62 crores at the same discount factor, entailing loss of Rs 76.11 crore to the WBIDC over the entire lease period," the report states.

To this the WBIDC said that the discount was made as part of the "special incentive package" announced by the government for the TML.