Tata Motors opted for Gujarat over several other states for its Nano project because of the speed at which the state acted after the auto major pulled out of Singur in West Bengal, company chairman Ratan Tata said Friday.
“We have selected Gujarat over other states because of the speed in which it acted,” Tata said at a press conference, which was also addressed by Gujarat Chief Minister Narendra Modi.
"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 incremental project cost," Tata said.
He said the infrastructure available in the state, as well as the spirit and enterprise of the people of Gujarat and the state government led by Modi also made the choice compelling in the best interest of the project.
Company officials said the strategic location of Sanand, some 30 km from Ahmedabad and its proximity to the Ahmedabad-Rajkot highway made the new site attractive.
The plant will be spread over about 1,100 acres, and will have an initial capacity of 250,000 units, which can be expanded to 500,000 cars annually.
The project, including Tata Motors' plant, vendor facilities and units for service providers, will together generate over 10,000 direct and indirect jobs, Tata Motors said in a statement.
Apart from Gujarat, states such as Karnataka, Andhra Pradesh, Haryana, Rajasthan, Orissa, Maharashtra and Uttarakhand had tried to wangle the project, which was moved out of Singur, West bengal, after wallowing in controversy for over two years since its inception.