Saturday, February 21, 2009

Tata’s Nano to roll out from Gujarat

Ahmedabad: Days after Tata Motors officially quit from West Bengal over excessive politicisation of the Singur issue, Tatas have decided to relocate their Rs 1 lakh Nano car project in Gujarat, after scouting many sites in Karnataka and Andhra Pradesh. A formal announcement in this regard is likely to be made by Tata group chairman Ratan Tata and Chief Minister Narendra Modi later in the day.

Several states have offered to provide necessary infrastructure and sops to Ratan Tata shortly after his announcement to pull out of West Bengal due to unrelenting opposition from Trinamool Congress to its Singur plant.

The Gujarat government has been campaigning seriously to woo investors from across the country and abroad and if the Tata Motors’ Nano project comes to Gujarat it will be a big victory for Modi.

Modi has marketed Gujarat as an “investor friendly state” in the recent past and to some extent succeeded in attracting Tatas to look at his state as a viable option.

If Tatas manage to ink a deal with the state government it would give Modi a political mileage by establishing the image of his party BJP as investor friendly as against to the Left Front or Congress.

Speculations doing the rounds suggest that Tata Motors is possibly interested in a site near Sanand, 25 kms from the western fringes of Ahmedabad for relocation of the Nano plant.

The Gujarat government has reportedly cleared the decks for the transfer of 1,400 acres of land to the Tatas and also assured them various tax sops and ready land along with connectivity with National Highway.

According to reports, the Gujarat CM will also hold consultations with his key ministers prior to his meeting the Tata Motors chairman.

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