Tata Motors announced last week that all compensation issues with the Tata Nano’s component vendors had been resolved. Vendors are expected to shift their production units to Sanand, Gujarat by March 2009. After Tata Motors decided to move the manufacturing facility of the Nano from West Bengal to Gujarat in October 2008, there had been some uncertainty regarding how vendors would be compensated. A number of vendors had already made significant investments at the Nano plant in Singur, West Bengal when the announcement was made.
Mr Rajiv, President, Tata Motors, Passenger Car Division told mediapersons that a mutual agreement had been reached between the company and the vendors, and that there were no remaining issues.
The Nano’s erstwhile production site in Singur will now probably be used to set up a power plant. Officials from Bharat Heavy Electricals Limited (BHEL) and West Bengal Power Development Corporation (WBPDC) visited the site last week to assess its suitability for setting up a project. The two parties are expected to set up a 1,600 MW power plant at the site, in a joint venture.
