AHMEDABAD: After a controversial stay in West Bengal, Tatas shifted their Rs 100,000 car Nano project to Sanand near Ahmedabad at an investment of Rs 20 billion, declaring that efforts will be made to roll out the world's cheapest car from a make-shift plant to meet the deadline.

"This is an extremely momentous and happy day for us because we have been through a rather sad experience from a small quarter of residents of West Bengal despite the state government's efforts," Tata Group Chief Ratan Tata said at a joint press conference with Chief Minister Narendra Modi.The MoU was signed by Tata Motors Managing Director Ravi Kant and Industrial Secretary Gouri Kumar praising Modi for speedy allocation of about 1,100 acres of centrally located land, Tata said the company had a great deal of urgency in having a new location and was driven by the reputation of the state.

"The site in Gujarat, already under the possession of the state government, will help Tata Motors establish a new dedicated mother plant with the shortest possible time lag and least possible increment project cost," he said.

Together with Tata Motors, about 60 vendors would also move to the new location.Asked about the over-all deal offered by the Gujarat government, Tata said, "it is as good as or slightly better than the one we had previously (in West Bengal)." Gujarat was one of many states in the race for Nano car manufacturing facility. Welcoming Tatas, the Chief Minister said, "Tatas and Gujarat have started a new chapter of partnership which will give a new direction and dimension to the state.

"After the Nano car project, Gujarat will make an important place in surface transport." To begin with, Tata Motors would produce 250,000 to 300,000 cars annually and the capacity is expandable up to five lakh cars per annum, Tata said. When asked about the timing of launching Nano, Tata said, "It will be our endeavor to be close to the timeline so that we can keep our promise." He, however, did not specify any timeline and said the company would make an announcement in this regard later.

"Building this plant in Gujarat will take some time and we have some make-shift plan to introduce Nano in the market in the interim month while the plant is being built," he said. A company statement said it would explore the possibility of manufacturing Nano at its existing facilities in Pune and Pantnagar and would launch the car in the last quarter (Jan-March) of the current financial year.

Meanwhile, reports from Uttarakhand said 'limited production' of the world's cheapest car will take place in Pantnagar."Tata Motors officials have conveyed to the state government that limited production of Nano will be held in Pantnagar despite their decision to take the mother plant to Gujarat," said Uttarakhand media advisory committee Chairman Devendra Bhasin quoting Chief Minister B C Khanduri.

Tata Motors also plans to have CNG, electric and exports variants manufactured at the mother plant in Sanand, Tata said.Talking about the size of investment, company's Managing Director Ravi Kant said it would be about Rs 20 billion."... There will be some more things that we are talking about. We expect more number of vendors to come here.