Nano project in limbo despite Singur land deal

08 September 2008

Mumbai: Work at Tata Motors' low-cost car `Nano' is yet to resume with the company insisting that it would have to ensure the viability of the project after the land deal between the government and the agitators led by Trinamool Congress chief Mamata Banerjee.

The land deal between the West Bengal government and Mamata Banerjee to resolve the Singur land row lacked clarity and the Nano mother plant will remain closed until a the agreement was found viable, Tata Motors said in a statement.

The viability of the project is closely linked to availability of components and spares and the proximity of ancillary units is crucial for that, the company said.

''Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant,'' the  statement said.

''We will review our position only if we are satisfied that the viability of the project is not being impinged, the integral nature of the plant and ancillary units are being maintained and all stakeholders are committed to developing a long-term congenial environment for smooth operations of the plant,'' the statement said.

Tata Motors insisted that it won't settle for anything less than 1,000 acres of land for the project just as the Mamata Banerjee-led farmers said they won't surrender fertile land for anything.