World | India
Confusion over Tata's Nano plant is beginning to clear
India's Tata Motors said on Monday it would not start work at the low-cost Nano car site, where work was suspended last week, until it was confident of smooth operations and the continued viability of the project.
- Agencies
- Published: 23:49 September 8, 2008
Mumbai: India's Tata Motors said on Monday it would not start work at the low-cost Nano car site, where work was suspended last week, until it was confident of smooth operations and the continued viability of the project.
Tata Motors Ltd, India's top vehicle maker, said it was "distressed" at the limited clarity in the outcome of talks between the government of West Bengal, where the Nano plant is located, and protestors who had caused disruptions.
"Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant," it said in a statement.
Long-term commitment
"We will review our position only if we are satisfied that the viability of the project is not being impinged, the integral nature of the plant and ancillary units are being maintained and all stakeholders are committed to developing a long-term congenial environment for smooth operations of the plant."
In Singur, about an hour's drive from Kolkata, camps and makeshift stages that had been set up for the protest have mostly been dismantled, and the expressway that had been blocked for days with trucks backed up, saw normal flow of traffic yesterday.
Shares in Tata Motors were up more than four per cent at 437 rupees, after having risen as much as 6.7 per cent in early trade, in a Mumbai market that was up nearly four per cent.
"The shares are getting a boost as it looks like the confusion is beginning to get cleared and a resolution will be arrived at soon," said Ramnath S, a vice president of research at IDFC-SSKI Securities.
"But if this drags on any further, there may be delays," he said.
Farmers in Singur, who had forced Tata Motors to suspend work last week, said on Sunday they were ending their protest after the state promised to return some land.
Chairman Ratan Tata said last week the company was doing everything possible to launch as planned, around October, the peak of the festival season in India.
Share this article
News Editor's choice
-
Diabetes: A ticking time bomb
Gulf News takes a closer look at the spread of diabetes in the UAE
-
Africa segment at Dubai film festival
Productions feature interesting mix of genres tackling serious issues
-
What to expect at the Dubai Airshow
We preview what types of aircraft to expect at the Dubai Airshow
