India's prime minister has said it was not too late for a "negotiated settlement" in the Tata Nano factory land dispute, a local newspaper reported on Wednesday.

"I don't want to apportion blame," Mahnmohan Singh told the Economic Times of India while returning from a visit to the US and France.

"But I sincerely believe that even now it is not too late to find a negotiated settlement which would meet the concerns of those farmers who are agitating as well as the concerns of the investors that is the Tatas," he added.

The West Bengal government was making a fresh effort to resolve the row, the report said.

Tata begins to leave dispute site