Monday, June 30, 2008

Singur 'challenges' may make Tata Nano costly

Tata Motors may lose out on some future customers soon.

The cost of the Nano project at the Singur plant in West Bengal has shot up to Rs 2,000 crore, which is up by Rs 300 crore since January this year.The initial project cost in 2006 was Rs 1,000 crore. The company says it has been forced into regressive mode due to waterlogging at the site during the monsson last year.

However, the Tata small car Nano is likely to roll out of the Singur factory during the Durga Puja in October this year. Tata Motors said it is working hard to make it on time.All this comes in the backdrop of protests against the project.

Kant made his first site visit since the panchayat elections to the project site at Singur on Friday when 12 rounds of tear gas shells had to be fired by the police to disperse an agitating mob.

A company statement said that he was on a routine visit to assess the plant’s progress.The plant has witnessed violent clashes in the recent past as villagers allege their land was forcefully taken from them.

According to reports, the Managing Director said over the last two years the company had overcome a number of challenges, which had resulted in cost overrun.

The cheapest car was planned years ago as a safer and more affordable alternative to motorbikes and scooters.


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