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Nano: Pantnagar an alternative choice?

NEW DELHI: With no signs of improvement in the volatile ground situation at Singur in West Bengal, Tata Motors might have to implement its alternative plan to ensure roll out of the world’s cheapest car, Nano, in the forthcoming festive season.

Threats from protesters, led by Trinamool Congress chief Mamata Banerjee, have further worsened the situation, forcing the management of Tata Motors to completely stop the work at the plant for the past two days.

“There has been no improvement in the ground situation so far, hence the conditions are still not conducive for resuming work today (Saturday). We continue to assess the situation closely,” a statement from Tata Motors said, underlying the current situation at the plat site where Ms. Banerjee has been camping with her supporters protesting the land acquisition and blocking highways.

After having made an investment of over Rs. 1,500 crore in the Singur plant, which still far from being completed, Tata Motors can no longer afford to just wait and watch. Sources say the company is now mulling to go ahead with the alternative plan to manufacture the Rs.1-lakh Nano from its other plants. Tata Group’s head Ratan Tata is likely to take a decision on the issue in the coming week.

Tata Motors has already received invitations from many States. Even the Sri Lankan Government has welcomed Mr. Tata to start the project in the island nation. To meet the October deadline, Tata Motors might think of utilising its existing capacity at Pantnagar in Uttarakhand and in Pune to start at least initial rollout of Nano.

According to industry experts, the best bet for Tata Motors is its new Rs. 1,000-crore Pantnagar plant where its popular pick-up truck Ace is being manufactured. With nearly 75 ancillary units of Tata Motors setting shop already in the industrial estate, producing Nano from Pantnagar would not be a problem.

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