Tata Offered Land to Relocate Nano Factory
August 26, 2008
State governments across India have flooded Tata Motors with alternative offers of land for a
plant to build the Nano as political activists and farmers besieged the existing site in West Bengal this week, the Financial Times reported Tuesday.
Tata Group Chairman Ratan Tata has said he would consider moving the plant because farmers protesting they were unfairly displaced are jeopardizing the company's $344-million investment. The protests could cause cost increases and delays in the introduction of the Nano, billed as the world's cheapest car at $2,500 and planned for sale in India by year-end.
On Tuesday, thousands of police officers were barricading roads to hold protesters at bay after 500 of them showed up Monday, causing traffic tie-ups in their effort to stop construction work at the plant. Some of the protesters have started hunger strikes.
A Financial Times source said nine other Indian states have offered alternative land for the plant. Meantime, the West Bengal government held an emergency meeting Monday to try to rescue the project. Under consideration is a compensation plan to resolve the dispute.
Photo
The Tata Nano was unveiled at the New Delhi auto show in January.
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