Almost two years after it was forced to move the factory for the production of "the world's cheapest car" Nano from West Bengal's Singur middle protests against land gaining, Tata Motors Wednesday inaugurated the new Nano plant in Gujarat's Sanader.
The new factory in Sanader was inaugurated by Gujarat Chief Minister Narendra Modi and Tata Group chairman Ratan Tata, who seven years ago dreamed of creating an affordable family car for the ordinary man.
"When I came here first in an industrial visit invited by Gujarat Chief Minister, I was told that if they (the Nano plant) is not in Gujarat, I'll be a fool.
"I'm no longer stupid for investing in plant in Gujarat," said Tata at the opening of the factory.
Spread over about 1100 acres, the area of Sanader has been created on the n investment of around Rs 2000 crore.
Speaking on the occasion, Modi said: "The revolution comes with Ford in the early 20th century with small car now being copied by Ratan Tata with his Nano."
Every middle class families dream of owning a car is met by Sanader at the inauguration of Nano plant, "he added.
Ratan Tata's dream to create a car that costs only Rs one lakh crore had challenges - both technical and political - since it was conceived in 2003.
At a time when costs were rising, with production in a comfortable mini-car powered by a 623cc engine that provides a competitive miles, was a big enough challenge for the engineers of Tata Motors.
While Tata was able to overcome it, the group does not make political challenge from the Trinamool Congress, and had to move industrial output from its original location at Singur in West Bengal to Sanader in Gujarat in October 2008. Tata, at that time had already set over Rs 1,000 crore in Singur.
The delay not only the original plans for the commercial launch of Nano in about five months, but also affected availability.
Till the time Sanader plant was finished, the company went ahead with the limited production of Nano - touted as world's cheapest car with a factory-gate price of Rs 1,00,000 (slightly over $ 2000) - from Pant Nagar in Himachal Pradesh.
Bookings for the car was opened in April 2009 and deliveries began in July of that year. It has so far delivered more than 35,000 units. But only the first 1,00,000 customers are sure to get the car on an ex-factory price of Rs 1,00,000.
Sanader The plant has capacity to produce 2.5 lakh units a year, which can later be increased to five lakh units a year. Pilot commercial production of Nano on Sanader has already begun.
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