Tata drives cheap car project to Gujarat

[LRE]

Tata drives cheap car project to Gujarat

AHMEDABAD: India’s giant Tata Group has found a new home for its project to build the world’s cheapest car after violent protests forced it to abandon its factory in West Bengal, reports said Tuesday.

With numerous states around the country vying to host the plant, Tata has chosen a site near Ahmedabad, capital of the western state of Gujarat, television reports said, citing company officials.

Tata Group chairman Ratan Tata was expected to formally announce the move at a press conference with Gujarat Chief Minister Narendra Modi later in the day.

Tata announced late last week that it was pulling the Nano car project out of West Bengal state, even though the plant it had been constructing near Kolkota was 90% complete.

The decision followed a month of violent demonstrations by evicted farmers and activists, who complained they had been forced to give up their land for a pittance to make room for the high-profile factory.

The Nano, conceived by Ratan Tata as a way to make cars affordable to ordinary working-class Indians, has attracted worldwide attention due to its planned price tag of around $2,100.

As soon as it became clear Tata was considering cutting its losses in West Bengal, intense competition broke out among other states like Karnataka and Andhra Pradesh to woo the project. afp

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