Nano project cost increases by 18%

Kolkata: Tata Motors Managing Director Ravi Kant said the company has invested Rs 2,000 crore for the Nano plant at Singur so far, 18 per cent higher than the earlier investment plan.

Speaking to mediapersons after a meeting with the West Bengal Chief Minister Buddhadeb Bhattacharjee at Writers Building, Kant said that the company had earlier estimated the project cost at Rs 1,700 crore. The original project plan has been reworked, thanks to the floods at the site last year, which primarily led to cost escalation.

Kant said that despite the cost overrun, the Rs 1 lakh-car would roll out from Singur before Durga Puja. Trial production will begin in July-August. 'We are working at a breakneck speed so that we car start production as soon as possible,' he said.

Kant visited Singur to inspect the progress of the project and sources indicated that part of the agenda was to review the drainage system. To avoid flooding, the level of the land at the project site has been raised by 1.5-2 metres. Kant's last visit to Singur was in February.

Kant said that the company was flooded with enquiries from various countries for setting up production facilities as well as distribution networks for the small car. It is a great sense of pride for everybody, he said.

'The Nano has received enquiries for setting up plants and distribution networks from countries like the United States as well as Latin America, Europe and South East Asia,' Kant said.

'It is a great sense of pride for everybody,' he said, adding: 'Nano has changed the rules of the market'.

The one lakh wonder, which was unveiled earlier this year at the Auto Expo in New Delhi, has taken the world by storm eliciting a tremendous response from different markets.

The Nano became a hit at the Geneva Motor Show this year with many global firms showing their admiration for the Tatas for coming up with a car at such a mind-numbing cost.

Kant had earlier stated that while the company's focus would remain on the domestic market for the first couple of years, Tata Motors was keen to take the car to continents like Africa and Latin America.