The Nano's journey

Tata Motors' Sanand plant for Nano was inaugurated on Wednesday by Gujarat Chief Minister Narendra Modi and Tata Group Chairman Ratan Tata, who seven years ago dreamt of making an affordable family car for the common man.

In October 2008, Tata exited Singur after reportedly having spent nearly Rs 1000 crore on his factory there.

On this occasion, Ratan Tata, chairman of Tata Sons, said, “We had to move under duress and we had to search for a new home for the plant. Mr Modi stood among others to guarantee whatever we needed. It gives me a great please to make this investment on the 50th year of the state”.

Tata Motors' Nano will officially roll off on Wednesday from the Sanand plant in Gujarat, opening a new chapter in its history. The production at the Gujarat plant will start nearly two years after it was forced to shift the manufacturing plant of its dream car following a land row in West Bengal.

Spread over an area of about 1,100 acres, the new Sanand facility has been created at the cost of approximately Rs 2,000 crore.

The Sanand facility has the capacity to manufacture 2.5 lakh units annually, which can subsequently be increased to 5 lakh units per annum.

Tata Motors captured the global attention by unveiling the Nano in early 2008.

But Tata Motors ran into tough times after protests in Singur and and had to shift the Nano plant to Gujarat, forcing a delay in the rollout of the Rs 1 lakh car.

Singur cost us Rs 500 crore: Tata
Tata Group chairman Ratan Tata said the failed Nano plant at Singur cost him about 500 crore rupees, but he's willing to return the land if the government compensates Tata Motors.

The company faces initial capacity constraints till its Gujarat plant comes onstream. In the interim, the company is manufacturing the Nano at its Pantnagar unit.

The bookings for Nano started on April 9 and closed on April 29. Tata Motors said it received over 2.03 lakh bookings for its Rs 1 lakh car Nano, garnering nearly Rs 2,500 crore.

On July 18, world's cheapest car, the Tata Nano, was delivered to its first customer in Mumbai.