Production of Tata Nano could be delayed due to land dispute
Click above for a high-res gallery of the Tata Nano.
Indian carmaker Tata chose a site in Singur, India for the plant that would make the Nano, the world's cheapest car. Not long afterward, eleven petitions were filed in the Calcutta High Court stating that the purchase of the land for the factory violated the Land Acquisition Act of 1894. It was alleged that the government of Bengal forcibly took "fertile multi-crop agricultural land" from farmers for industrial use, which isn't allowed.
Earlier this year, the Calcutta High Court found in favor of the government of West Bengal (where Singur is) and Tata. Now another petition has been filed with India's Supreme Court over the issue, and the Supreme Court has asked the West Bengal government and Tata to respond.
The issue for the moment is that the Nano is supposed to go on sale in October -- but the next hearing over the land use petition won't be held until July. Some suppose a revised land deal might drive up the price of the car. Regardless, if Tata doesn't work out a production alternative, Tata won't get the head start it was hoping for on what could be a huge market.
Gallery: Tata Nano
Gallery: Tato Nano - Live from Geneva
[Source: Times of India via Detroit News]
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Reader Comments (Page 1 of 1)
4agze 6:18PM (5/13/2008)
who cares?
Reply
Mehul 6:23PM (5/13/2008)
Autoblog is not just read by American users. I'm sure all the Indians on Autoblog care.
Fatima 6:24PM (5/13/2008)
A billion+ people?
Mr. Blake 6:41PM (5/13/2008)
No one *should* care. If you want a $2500 car, buy a used one. It would still be better in every aspect than that amarillo turd pill.
Sherief 6:45PM (5/13/2008)
We should all care!
I mean, who doesn't love Tatas?
Sandeep 7:12PM (5/13/2008)
@ Mr. Blake:
You think used cars here show wear and tear? Go to India, and watch the roads virtually suck the souls out of these cars in 4-5 years. It takes an insane amount of maintenance to keep a car both in good shape and on the road.
Bungle 7:47PM (5/13/2008)
@Sherief:
True, but Tata Nanos just aren't as fun as Tata Maximos.
saycheese 7:09PM (5/13/2008)
At Mr. Blake:
Do you realize that this car is for sale in India.. not the US? And how can you be so sure that a $2500 used car would be better than a brand new Nano in "every aspect"?
4agze 7:21PM (5/13/2008)
only nano ill buy is the ipod again who cares
Reply
Judy Zik 7:43PM (5/13/2008)
The blog is about the Auto Industry. Like it or not the Nano is quite likely going to be a revolutionary vehicle for the whole industry. At such a low price in key emerging markets in Asia at the right time this vehicle could quite possibly become the best selling vehicle ever.
Bungle 7:50PM (5/13/2008)
Damn, Autoblog, you better wake up and start catering to 4agze. Apparently he's the only person using this website that matters.
OOMPH! 7:55PM (5/15/2008)
..oddly ,i think this painfully ugly little beast has a kinda weird charm..i know i should hate this thing,but i just cant....armadillo turd pill is hysterical though! Das Auto
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Jeff Banks 8:53PM (5/13/2008)
I bet all the farmers living on $6 a day that were planning on selling their land to Tata for an awesome profit are a little pissed.
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sdcarnut 9:54PM (5/13/2008)
Can anyone from India chime in on this ? with all the millions and millions of acres of land in India why did Tata choose this site if it was gonna be an issue, i just don't understand that planning error.
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Colin Smith 1:43AM (5/14/2008)
India is huge, but it has over a billion people too, and they need food.
I guess they believe that if land is to be built on it is best it isn't prime farmland.
Or perhaps someone is just angling for a bribe?
vcash 3:26AM (5/14/2008)
Hi sdcarnut / Colin - I follow the Indian car market quite closely and could provide some input on this.
The government of West Bengal, offered subsidies and tax breaks to Tata to setup the plant in their state with the hope that it would generate employment opportunities and urban development for the same farmers in the Singur agricultural belt. There are other advantages for Tata too - A lot of ancillaries are rather close by in the neighboring state of Jharkhand (Jamshedpur) so this brings down transport costs for parts. The land dispute is being propagated by rival political parties in WB, who want to use this to overthrow the current state government.
As for the October launch of the car, it will stay on track. Here is why - Singur was never intended to be operational before 2009. The initial batch of Nano's will be produced in Tata's Rajkot factory. There is also a rumor that on May 16th, Tata will anounce a booking start date on July 1.
Hope this answers your questions.
Thanks,
vcash.
Dhiram 4:10AM (5/14/2008)
Just what you would expect in India - Red Tapism and corruption. Stuff Mamta Banerjee with 1000 Rs notes and the plant will get the green signal.
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tanooki2003 9:35AM (5/14/2008)
For those of you that just don't care do us a favor and either just don't click on this page or any subjects relating to the Nano or go back to Jalopnik.com so you can talk about your old gas guzzling, aging, rusting hunks of junk or who's got the biggest truck.
Your idiotic careless comments just prove how small minded you are when it comes to the rest of the world.
Reply