Tata Group Chairman Ratan Tata and Gujarat Chief Minister Narendra Modi signed a memorandum of Understanding on Tuesday to announce that the Tata’s Nano project would be set up in Gujarat. Tata and Modi made a statement at a joint press conference on Tuesday evening.
This followed the Tatas’ search for many sites, including some in Karnataka, Andhra Pradesh, Haryana and Uttaranchal Pradesh.
Announcing his decision to move to Gujarat, Ratan Tata said on Tuesday that Tata Motors will produce 2.5 lakh (250,000) cars annually. The capacity of the Nano plant can later be increased to about 5 lakh (500,000) cars per annum, he said.
“We lost a lot of time,” the Tata chief said, and added that “it will be a while before Nano is rolled out from Gujarat, but the company has already made a makeshift plan to meet the deadline.”
Tata said that the car will be launched soon, but did not mention any fixed date for the launch. He also said that “no appreciable loss will be reflected in our financials of current year due to pulling out of Singur.”
The investment in Gujarat facility by Tata Motors is pegged at Rs 2,000 crore (Rs 20 billion), excluding vendors’ park, said Tata Motors managing director Ravi Kant.