Singur 'challenges' may make Tata Nano costly

ON THE ROLL: Despite cost overrun the Tata small car is expected to roll out in October.

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New Delhi: 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, they are hopeful that they will meet the October deadline to roll out the car.

All this comes in the backdrop of protests against the project. On Friday, when Tata Motors Managing Director Ravi Kant visited the site, villagers protesting the acquisition of farmland by the state government, gave him a stormy reception.

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.

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

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.