India's Tata Motors has announced it will move production of
its low-cost car, after weeks of violent protests in the country's east over a
Chairman Ratan Tata today (Friday) said he decided to move the 350
million-dollar plant out of Singhur in West Bengal state because of continued
opposition to its presence there.
The factory was set to manufacture what is being called the world's cheapest
car -- the "Nano" -- priced at around two thousand dollars.
Work there was shut down for several weeks after deadly protests by the state's
main opposition Trinamool Congress party.
Opposition leaders have said
local villagers were unfairly compensated for their land, which was used to build
the Tata factory.
Efforts to resolve the land dispute failed, with protesters recently rejecting
a government offer to return 30 hectares of land.
Tata says the company is examining offers from three or four states to host
production of the car.