Tata WB car plant announced

Kolkata, May 18 | Updated: May 19 2006, 05:37am hrs
The Tata group on Thursday announced its decision to locate the manufacturing plant for its small car (likely to be Rs 1 lakh car)in West Bengal, near Singur town in Hoogly district. The Rs 1000-crore project, together with a proposed Rs 250-crore expansion by Tata Motors subsidiary Telco Construction Equipment Company Ltd (Telcon) at Kharagpur to make earthmoving equipment, "significantly" increases the stake of Tata in West Bengal.

Group chairman Ratan Tata said the latest commitment to West Bengal came after the group scoured the country for attractive locations.

"We have scanned the country, looked at various locations, and have decided to locate this rather revolutionary plant that will give India a true people's car in West Bengal," Mr Tata told reporters at Writers' Buildings after meeting chief minister Buddhadeb Bhattacharjee.

Mr Tata said prototypes of the small car are already running at the Tata Motors plant in Pune. The design has been frozen. But he declined to state anything beyond saying that it would be a four-door car with a rear-mounted engine.

Mr Tata flew down to Kolkata this evening just to make the announcement in between board meetings in Mumbai.

"West Bengal today is an attractive investment area in the country, where we hope we can be involved with the resurrection and revitalisation of the automotive sector," he said.

On Fast Lane

THE PROJECT
Manufacturing plant for small car
INVESTMENT
Rs 1000-crore
LOCATION
Singur town in Hoogly district, West Bengal

Mr Tata said the Tata group has great confidence in Mr Buddhadeb Bhattacharjee's government, and expects to participate in the growth of the state in the years to come. "If one major industrial house sets up one major company, which in turn will create jobs for ancillaries and vendors, the impact of that will grow and others will come," he said. Mr Bhattacharjee said the government would acquire the 1000 acres required by the Tata Motors plant.