Tatas to pump in more money for Singur

Rs 2000 crore to be pumped into Tata Motors' Singur small car project.

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BY OUR AUTO CORRESPONDENT

March 13, 2007: The protests notwithstanding, Tata Motors has more than doubled its investment plans for the small car project in Singur in West Bengal. According to a report, the Tatas will pump in more than Rs 1,500 crore for the mother plant on 645 acres for which a 90-year lease agreement was signed with the state government the other day.

Adding to this investment would be the vendors who will pump in Rs 500 crore more in the project, the report said. The new development is significant in the fact that Tata Motors had earlier said that the total project cost for the plant with an initial capacity of 2.5 lakh units, would be Rs 700 crore. The project cost is said to have gone up because of the increase in the planned capacity of production.

Come March 2008, and the dream small car from the Tata stables is expected roll out from the Singur plant. With the Tatas going all out to make the dream car a reality, the West Bengal government is also doing al what needs to be done to aid the project. According to reports, the State Electricity Board will set up a 220 KV sub station on the area of the mother plant on 14.5 acres of land while the West Bengal Industrial Development Corporation will build the requisite infrastructure on 47 acres, said the report.