Second slot of Nano, Tata Motors now in the race in Karnataka

Amidst the commotion in installing the manufacturing unit in Gujarat for Rs1 lakh car , Tata Motors is now journeying towards Karnataka(Dharwad) for the same race. If fortune smiles the Karnataka state Tata Motors will start the second plant in its South India base, with an assurance given to the state government in this regard. The reciprocity from the state government has been positive including land, tax concessions in the lines of Gujarat government.

The initial offering of the Karnataka government was in the form of 1000 acres of land in a split of 600 acres in just 24 hours and the remaining in the time span of three months. But the venture could not fruitify but the time has now come for further negotiations and this time Tata is firm on its foot at Dharwad. In the current move, according to the government’s Minister, 2500 acres of land has been acquired adjacent to the proposed Nano plant from which 1000 acres will be benchmarked for Tata. The choice of Dharwad is for the reason that it is closer to Pune to indicate the wide presence of Tata. Further talks are on between the Chairman of Tata, Ratan Tata and the government officials. The present unit in Pantnagar is designing Nano and the full-fledged Nano plant will start its operation from Sanand in Gujarat from 2010.

The Dharwad plant is currently in the operation for Telcon ranges including a bus project with Brazil ‘s Marcopolo. Tata has got possession of 600 acres with the employees ranging upto 3500 in its two plants and the bus plant has yielded Rs500 crore investment by which the commercial production commenced this January. Karnataka government has in good spirits to promote Korea’s Hyundai and, Mahindra&Mahindra too for erecting their units in this state. Earlier, Toyota got the grace from the Karnataka government for Rs800 crore at Bidadi. In all the Karnataka government is in celebrity mood to meet the automobile industry prior to the global investor’s meet slated for January 2010.