Auto News

Tussle Between Indian States to Help Nano Plant

By Motortrend India Staff   |   24 September,2008

Tata’s Nano is having a tough battle at Singur plant in West Bengal.

Few of the Indian states are competing with each other to support the Nano project. Andhra Pradesh wants Nano small car project plant in its state for which the state Congress government is ready to give 1,000 acres of land. With respect to this desire the state government is having a tough tussle with Karnataka Government for pre-eminence in the region by belligerently offering a better deal to the Tata’s Nano project.

According to B Sam Bob, Principal Secretary, Industry, Tata’s team of officials are expected to drive to Hyderabad to accept the state’s proposal.

With so many states spreading a red carpet for Tata Nano, Karnataka was last in line to encourage and stimulate the car manufacturer to set up its plant. The state offers 1,000 acres of land to the Tata Motors along with the support and required incentives.

The company responded that Andhra Pradesh is a better option for them to relocate the plant because Caparo Engineering, a leading auto part manufacturer who has signed a contract to supply inner steel panels to Nano, has already taken 2,000 acres of land in the state. He said the Andhra Pradesh state government has identified land for Nano at a few places in Nellore district, a place where Caparo is located, and in Kakinada in East Godavari district. Apart from these locations in Medak and Warangal are also being considered for the small car project.

Apart from Andhra Pradesh, Karnataka, and Hyderabad; Maharashtra and Uttarakhand have also lend a helping hand to the car manufacturer.

Related Content