Production of the world's cheapest car, the Tata Nano, has been stopped indefinitely after violent protests, it has been reported. Tata is understood to be looking to relocate its Indian factory after a clash with farmers who are claiming rights to the land where it is located.
The farmers in West bengal say they want a return of the 400 acres of land and their violent protests have stopped any work being done at the factory. Tata is calling the situation at the plant 'hostile and intimidating'.
The demonstrators are accusing Tata of taking the land from the them to build the plant in Singur, 50km from Calcutta. Now Tata is being forced to look at relocating the factory to six other sites in India, despite reportedly investing $350million into the Singur plant. It said it had a 'deadline' to meet to build the $2,500 car.
'There is no way this plant could operate efficiently unless the environment became congenial and supportive of the project,' a company spokesman said.
One of the leaders of the protest movement said farmers' rights to their land had to be taken into consideration. 'It is Tata's decision, not ours," he said of the move to stop work,' he said. 'We never asked them to leave.'
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