Click above for a gallery of the Tata Nano

We've been expecting Tata to officially announce a diesel engine option for its diminutive little Nano microcar for quite some time now, and things appear to be moving in that direction once again. Tensions have been high over the last few months as violent protesters forced the Indian automaker to move the Nano's production site from West Bengal to an interim facility in Pantnagar, where Tata believes it can produce some 80,000 Nanos by March of 2010. After production ramps up and a second plant in Sanand is up and running, Tata hopes to produce 150,000 of its microcars in that first full year of production. And, after that ball's started rolling, a diesel engine option is expected that will offer a more expensive and more frugal alternative to the twin-cylinder 625cc petrol-powered unit that will be standard. Luxury options like air conditioning and an automatic transmission will also be available. Thanks for the tip, Shrawan!

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