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Tata Motors looks south to get Nano off starting block
Tata Motors said on Thursday the southern state of Karnataka had offered land for a production plant for its ultra-cheap Nano small car after the firm suspended work in West Bengal in the wake of violent protests.
- Agencies
- Published: 00:18 September 19, 2008
Kolkata: Tata Motors said on Thursday the southern state of Karnataka had offered land for a production plant for its ultra-cheap Nano small car after the firm suspended work in West Bengal in the wake of violent protests.
The company had originally planned to roll out the 100,000-rupee (Dh7,905) Nano from the communist-governed state of West Bengal in October, but farmers angry over losing their land and supported by opposition politicians forced work at the facility to be halted.
"Karnataka has offered 400 hectares of land and incentives for setting up the Nano plant in the state," a Tata Motors spokeswoman said after Ravi Kant, the firm's managing director, held a meeting with the state's chief minister.
Kant later told television channels the company was considering its options on moving the plant out of Singur, an hour's drive from West Bengal's capital Kolkata.
"In case we were thinking of relocating the plant from Singur, he [Karnataka Chief Minister B.S. Yeddyurappa] would give all necessary support and assistance and incentives to make it happen.
Looking at alternatives
"We are watching the situation and actively looking at alternatives."
Karnataka Chief Minister B.S. Yeddyurappa told reporters he was hopeful the Nano factory would be relocated to his state.
Tata Motors had said it would look for alternative locations for a plant for the Nano, dubbed the world's cheapest car, after calling a halt to work in West Bengal.
Farmers in Singur, where Tata Motors was building its factory, say they were forced off their land without adequate compensation. Some said their consent was not sought and land was seized by authorities.
The farmers want their land returned and have been backed by the local Trinamool Congress party, which has been spearheading the protests.
Tata Motors and state government officials offered to raise the compensation for the farmers by 50 per cent but the Trinamool Congress rejected the offer, threatening more protests.
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