Tata Prepares Relocation Of Its Small Car Plant

Tata has fed up with the stiff agitations and violent demonstrations against its project at Singur. It has sent strong signals to the state government about the relocation of its small car project plant.

Tata is manufacturing world’s smallest car at Singur plant, which is expected to come in the market in next month. But, due to protests of various political and social groups the much awaited Tata cheap car ‘NANO’ may take more time to enter in the market. Some political parties are demanding back of the 400 acres of land which is acquired by state government for this project. TATA has already spent about Rs15bn ($338m) on the plant.

TATA has suspended all construction and manufacturing work in the plant. TATA motors warned last week end that it might shift the location in case of further obstruction in its work.

However, the state is doing its best to resolve the matter with dialogue. It has asked main opposition party - the Trinamool Congress to resolve the deadlock for the larger interest of the state. However, the opposition party said that it is not against the industrialization of state. It only wants back the chunk of 400 acres of land from the total allotted land.

It would be the second plant to be abandoned by tata. Earlier, it had a steel plant in Orissa.