Mumbai: Tata Motors has signed an agreement with the West Bengal government to take control of the 1,000-acre land at Singur for setting up a plant to manufacture the world's cheapest car.
The agreement was signed by state industry secretary Sabyasachi Sen, managing director of West Bengal Industrial Development Corporation (WBIDC), Debashis Shome, and Tata Motors vice president (finance) R S Thakur.
As per the agreement, Tatas will make a total investment of Rs 1,500 crore to set up the main plant, while another Rs 500 crore will be invested for auto ancilliary units.
The Tatas had originally planned to invest Rs 1,000 crore in the pet project of group chairman Ratan Tata, although it now works out to Rs 1,500 crore, a Tata Motors spokesman clarified. The amount would be invested for the main plant with a capacity of 2.5 lakh units per annum.
The company signed an agreement with the West Bengal government to take the land on lease for 90 years. The acquisition of the land had kicked off a political storm with Mamata Banerjee's Trinamool Congress opposing the project, saying it uprooted farmers.
Details of the agreement were not available as the assembly is in session.