Sanand: There was mutual admiration expressed loudly and repeatedly as Ratan Tata and Gujarat Chief Minister Narendra Modi inaugurated the 2000-crore Nano plant at Sanand in Gujarat. "Ratan Tata has promised to surprise me with more investment," said Modi. Minutes before that, Tata expressed his thanks. "Narendra Modi stood out amongst all others, in giving us what we needed. We owe you a debt of gratitude. Gujarat is an exemplary state, it makes us proud."
However, the approaching cyclonic storm Phet soon forced the event to be abandoned as winds and rain blasted into the area.
Tata had to find a new home for his Nano plant after it was forced out of West Bengal's Singur by a campaign led by Mamata Banerjee and her Trinamool Congress, who alleged that farmers were being forced to surrender their land at unfair rates by a government determined to favour Tata.
The demonstrations against the Nano plant often turned violent. In October 2008, Tata exited Singur after reportedly having spent nearly Rs 1000 crore on his factory there.
"When Ratan Tata said that he is leaving Bengal, I sms-ed him saying 'welcome to Gujarat'. And an sms that cost one rupee bought the plant here," said Modi.
The change in direction delayed the rollout of the Nano by five months. It also meant the Rs 1 lakh car was in short supply. Bookings for the car opened in April 2009 and deliveries began in July that year. So far, more than 35,000 Nanos have been sent to buyers.
However, only the first 1,00,000 customers are assured of getting the car at a "factory gate price" of one lakh. While the Sanand manufacturing plant was being readied, limited production of the Nano was carried out at Pantnagar in Uttarakhand. The Sanand facility has the capacity to manufacture 2.5 lakh units annually, which can subsequently be increased to 5 lakh units per annum. (With PTI inputs)