Ratan Tata, Chairman, Tata Group, while unveiling the Tata "Nano" during the 9th Auto Expo in New Delhi early this year. Photo: Ramesh Sharma

Ahmedabad (PTI): Within days of exiting from West Bengal, Tatas have decided to relocate their Rs one lakh-Nano car project in Gujarat, after scouting many sites including that Karnataka and Andhra Pradesh.

Tata Group Chief Ratan Tata and the Chief Minister Narendra Modi would jointly announce the project in the state later in the day, officials said.

Tatas have identified the site at Sanand, near Ahmedabad, where the state government will give 1,000 acres land from the Anand Agricultural University for housing the project.

The new project site was finalised last evening after yet another visit by the Tata Motors officials, who in the last few days had scouted for possible locations in many other states.

Ever since the Tatas faced political resistance in West Bengal for their project at Singur various state governments, including Karnataka and Andhra Pradesh, were in the race to woo Tatas to set the manufacturing facility for the cheapest car in the world.

According to state government officials, the MoU between Tata Motors officials and Chief Minister Modi would be signed in the evening on Tuesday.

Last week, after witnessing stiff protests from the Opposition party led by Trinamool Congress leader Mamata Banerjee in West Bengal, Tatas had dumped the project and had termed the decision as "unfortunate and painful."

Hitting at Mamata, Tata Group Chief Ratan Tata had said, "agitation by the opposition party has been the sole reason for this decision... How can we go into production when people are saying that we will continue agitation... I think Banerjee pulled the trigger".

Banerjee was demanding return of 300 acres of land within the project earmarked for the vendors and the same was rejected by Tatas saying vendors are integral part of the Rs 1,500-crore project.

Banerjee had also rejected the revised compensation package for farmers offered by the state government.

Tata, who had earlier charged corporate rivals for trying to sabotage the project, wondered the source of funding the agitation by Trinamool Congress, when asked if an industrial opponent was footing the bill.

Tatas had evacuated entire work force from Singur complaining intimidation and violence from the agitators who had cordoned of the entire area since August to prevent progress of work.

The India Inc had termed the Tatas' decision of pulling out of Singur as "most unfortunate industrial event of this century".

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