India: Tata Motors Announces New Location Where Nano 'People's Car' Will Be Built

GUJARAT, India — Tata Motors has announced that Sanand in the state of Gujarat is the new site where it will build its Nano, the long-awaited 'people's car' with the expected under-$2,500 price. The automaker last week officially abandoned a plant under construction in West Bengal in the wake of violent demonstrations. Tata's plant site had been the scene of protests for several weeks over what farmers allege were unfair land grabs.Since the announcement late last week that the Nano would not be built in West Bengal, several other Indian regions reportedly had offered sites before Tata chose this location in western India near the border of Pakistan.Ratan Tata, head of Tata Group, had called the Tata 'an orphan without a home,' the Times of India reported — but not for long. He has already signed a memorandum of understanding with the Gujarat state government and was described by the paper as 'visibly relieved.' The new plant will have a larger production capacity than the abandoned facility, starting at 250,000 Nanos per year and doubling that eventually — and will be starting production on the Nano in 12 months flat, according to the paper.Best of all, perhaps, is that the 1,100-acre site where the plant will be built is already owned by the state government and will be sold at prevailing market rates — avoiding the possibility of any more controversy about displacing farmers or anyone else from their land. Tata is also saying it will add job training as well as agriculture and marine biology research activities in the area around the plant to help make it a more welcome corporate citizen there.What this means to you: As the Times of India put it, 'What's West Bengal's loss is Gujarat's gain' — not to mention the gain of the many who are eagerly waiting for this ultralow-cost car to reach dealers. — Laura Sky Brown, Correspondent

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