On Tuesday announced that it is relocating the Nano plant to Sanand in Gujarat.
Tata Motors and Gujarat government on Tuesday signed agreement for setting up Nano car project in the state.
The state government has assured the Tatas various tax sops and ready land along with connectivity with national highway.
The project, that includes the mother plant and the vendor park, will come up on an area of about 1100 acres.
To begin with, the plant will produce 2,50,000 cars per year and the capacity could go up to 5 lakh cars per year.
"It will be a while before Nano is rolled out from Gujarat but have made make-shift plan to meet the deadline," said Rata Tata at a press meet also attended by Gujarat Chief Minister Narendra Modi.
Modi, on the other hand, announced the handing over of 11,00 acres of land at Sanand to the Tatas. A Tata Motors team has already done techno-economic surveys of the area.
In addition, the Tatas have also been assured that no bandhs or labour unrest will hurt the project.(Watch)
Rajkot could emerge as the ancillary hub for the Nano project. (With PTI inputs)