June 2: Nano to roll out of Sanand plant

The Sanand plant of Tata Motors, where the world’s cheapest car,
Nano, is to be manufactured, will be formally inaugurated on June 2. Tata Group chairman Ratan Tata and Gujarat chief minister Narendra Modi will attend the inauguration.

DNA had recently reported that the plant was ready for commercial production and was likely to be formally launched soon. A source having close contacts in Tata Motors confirmed on Tuesday that the plant will be inaugurated  on June 2.

“Ratan Tata will be present at the inauguration on June 2,” the source said, adding that the plant will be inaugurated by chief minister Narendra Modi.

According to officials, the Sanand plant will have an initial production capacity of 2.50 lakh Nano cars a year, which will be gradually increased to 5 lakh cars a year.

Tata Motors has invested around Rs2,000 crore for the Sanand plant which is spread over 1,100 hectare.

Trial production of the Nano at the plant started in January this year.

The plant was scheduled to begin commercial production in the first quarter of 2010 but that had to be rescheduled, said sources.

Tata Motors had originally planned to set up the Nano plant at Singur in West Bengal. The project, however, was shifted to Sanand in the wake of stiff opposition from farmers in Singur. An agreement for setting up the car plant in Sanand was signed between Tata Motors and the Gujarat government on October 7, 2008.

The Sanand plant, vendor facilities and service providers are together expected to provide employment to around 10,000 people.