INDIA: Tata relocates Nano plant

By just-auto.com editorial team | 7 October 2008

Tata Motors on Tuesday said it would relocate the Nano "mother plant" to Sanand in Gujarat state after violent protests over the seizure of farm land halted work on a 95%-complete facility in Singur in West Bengal state.

"The company had received overwhelming support from several states for relocating the plant," Tata said in a statement.

"After examining various sites in these states and carefully evaluating offers from the respective governments, the company has concluded that the site at Sanand and the offer from the Gujarat government is in the best interest of the project."

The integrated project, comprising mother plant and vendor park will occupy an area of about 1,100 acres.

The plant initially will build 250,000 cars a year but this can be doubled.

The project, including the car plant, vendor facilities and service providers, will generate over 10,000 direct and indirect jobs, the automaker said.

Tata Sons and Tata Motors chairman Ratan Tata said: "The site in Gujarat, already under the possession of the state government, will help Tata Motors establish a new dedicated mother plant with the shortest possible time lag and least possible incremental project cost. This is Tata Motors' maiden venture in Gujarat, and will broad-base the company's manufacturing footprint. We are happy to contribute to Gujarat's strong industrial progress by creating an auto cluster, which will have a cascading impact on the state's economy."

While the Sanand plant is built, Tata Motors will "explore the possibility" of manufacturing the Nano at its existing facilities at Pune and Pantnagar, and launch the car in the last quarter of this financial year, it said.

Tata begins leaving site