The Hindu Business Line : Tatas pick Bengal for Rs 1-lakh car plant

With the West Bengal Chief Minister, Mr Buddhadeb Bhattacharjee, who began his second innings today, sitting by his side, Mr Ratan Tata, Chairman of Tata Sons, today formally announced that the Tata Motors plant for producing the Rs 1-lakh car would be set up in West Bengal.

The project cost has been pegged at Rs 1,000 crore and the plant would be located at Singur in Hooghly district.

A total of 1,000 acres would be provided, of which 700 acres would be for the main production unit; the remaining 300 acres would be used by vendors and suppliers.

The Tata Group also announced a second investment plan for the State. Tata Earth Moving Equipment Co Ltd, popularly known as Telcon (a subsidiary of Tata Motors) would be investing Rs 250 crore in expanding its capacity at its unit in Kharagpur, which Mr Tata called a "fast-growing activity area." Meanwhile, in his first press conference after being sworn in as Chief Minister, Mr Bhattacharjee said that his Government has started land acquisition for the proposed Tata Motors project and that it would be handed over to the Group within a few months.

Mr Tata said that the unit would be commissioned in 2008 and would provide employment to a total of 10,000 people, including vendors, suppliers, and service providers. The plant will directly employ 2,000 people.

Expressing confidence about his dream project, he said that the prototypes are ready and currently running at the Pune factory. "We have already frozen the design of the car."

On the incentives offered by the West Bengal Government, Mr Tata refused to disclose details.

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