Font Size 
Singur speed-breaker: Tata falls back on Nano plan B
Published on Tue, Jul 01, 2008 at 08:12, Updated at Tue, Jul 01, 2008 in Business section
Tags: Tata Motors, Nano , New Delhi
HOT WHEELS: The protests in Singur are forcing Tata to move Nano's production.
Other stories in the section:
Moderation begins? Inflation down to 12.40 pc
Inflation declined for the week ended August 16 following a dip in prices.
New Delhi: Just last week, Tata Motors Managing Director Ravi Kant visited Singur and got a stormy reception. It seems pretty certain that protests at Nano's production hub will continue and could force Tata Motors to review some of its plans.
The company, though maintains, it is hopeful of meeting the launch deadline in October.
But sources say the company has communicated to its vendors and suppliers that they may cut down production from the planned 2,500 units per month to just about 500 units per month initially.
This means by the end of this fiscal, Tata Motors would roll out about 20,000-30,000 units instead of an earlier target of 50,000-plus units.
Network-18 also learns Tata Motors may be ready to roll out the Nano from its satellite plants in Uttarakhand. Sources say Pant Nagar plant, which is responsible for Tata’s LCV Ace, has begun production of the Nano.
In fact, vendors have been asked to supply components supply for about 1,250 cars in Pant Nagar. But these cars are said to be for trial runs.
Tata Motors had said that they are hoping that its car will at least be in some of the shops by July- August.
When contacted Tata Motors said, "Tata Motors is making all efforts to roll out the Tata Nano as per the timeline decided from Singur. Tata Motors has not produced any Nanos anywhere in the country. The company has always said that it is setting up its first and the mother plant at Singur. As also stated earlier, there will be satellite plants for the car, locations of which will be announced once finalised."
Speaking to the media last week, Ravi Kant said, "We will start the trial production as soon as possible. We do hope that it happens barring any unforeseen circumstances."
When asked about cost overrun, Tata admitted to have exceeded the earlier investment plans as the project has undergone major changes.
More Headlines from Business
| Related links: | |
Total Comments: 1
Read Comment | Post Comment
This is what happens if industries are setup in West Bengal and for that matter even Kerala where ppl (including
Read Comment
Read more comment »