After operating without a mother plant for more than a year thanks to protests from farmers at Singur in West Bengal,Tata Motors Nano,the worlds cheapest car,will at last get its dedicated home. The new plant at Sanand in Gujarat will be operational this April. A Tata Motors spokesperson confirmed this,adding that the initial capacity of 2.5 lakh units per annum and it would be attained in a phased manner.
The capacity at the Sanand plant can be expanded to 5 lakh units per annum. The trial production at Sanand has begun in December last year. Recently,Ravi Kant,vice-chairman,Tata Motors,said the company aims to reach capacity levels at the plant within six months from the time of commencing operation.
Construction of the plant in Gujarat began in late 2008 when the Tatas shifted the car project to Gujarat following a prolonged agitation by Mamata Banerjee-led Trinamool Congress demanding return of 400 acre at Singur. Tatas had earlier announced that it invested Rs 1,500 crore in the Singur project and had been allotted 997 acres.
The investment at Sanand plant is Rs 2,000 crore,according to the memorandum of understanding signed between the company and the government of Gujarat in October last year. The Sanand plant also houses a vendor park and the company claims that all the 56 vendors have agreed to shift to Sanand from Singur.
Currently,Nano is produced at the company’s plant at Pantnagar in Uttarakhand. The plant is producing around 4,000 Nanos per month,and has an overall capacity of 50,000 units per annum.
Till date,Tata Motors has delivered over 25,000 Nanos since July last year. The company got a total of 2.03 lakh bookings for the Nano,amounting to Rs 2,500 crore dated May 2009. Of the 2.03 lakh,the company selected one lakh applicants through a computerised random selection procedure.
Tata Motors will complete delivery of the cars to these one lakh applicants by the end of this year.