Tata considers all-new site for Nano production, protests at Sangur continue

After recent protests at its nearly constructed plant turned violent, India's Tata Motors is now heavily considering moving its production facilities from Singur in the state of West Benegal to the region of Karnataka in the south of India. Authorities from Tata confirmed the southern state offered 1,000 acres for the reestablishment of the automaker's Nano car production plant.

Prior to Tata finishing the plant's construction, local farmers had been protesting the arrival of Tata Motors for several years. They claim the automotive giant forcefully took their farmlands without consent and demand the return of their land. Government officials, though, say they can't return it due to it being already developed for automotive production.

In order to satisfy the locals, the West Senegal authorities offered to increase their compensation by 50 percent, but its was quickly refused by the lead opposition political party, the Trinamool Congress.

"In case we were thinking of relocating the plant from Singur he (Chief Minister B.S. Yediyurappa) would give all necessary support and assistance and incentives to make it happen," Tata Motors spokeswoman Ravi Kent stated. "We are watching the situation and actively looking at alternatives."

Tata had originally planned for its first run of Nano ultra-economy cars to roll off the assembly lines in October, but give the current situation, timetables have surely been delayed. Even with costs of raw materials on the rise and this latest debacle to deal with, Tata officials maintain the Nano will keep its 100,000 rupee ($2,500) price point.