Indian Farmer Rebellion Blocks Construction Of World's Cheapest Car

Remember that brouhaha in India, where farmers were complaining about getting booted off their land so Tata could build the world’s cheapest car? (the Nano, $2,500). Well, the farmers won:

Tata has shut down the construction of its West Bengal factory due to protests. Tata is now ratcheting up the rhetoric that it will simply abandon the project and move to another site. Of course they’ve been saying this for over a week now and actually following through on the threat would cost the company $338 million:

FT: India’s Tata group has sent its strongest signal yet that it might scrap its flagship plan to make the world’s cheapest car in West Bengal state, saying thousands of protesters were “violently obstructing” construction of the project’s factory.

Tata Motors said it was suspending construction work indefinitely at the site of the plant in Singur, near Kolkata, which has been besieged for the past two weeks by political activists who claim poor farmers were forcibly evicted to make way for the project.

“The company is evaluating alternate options for manufacturing the Nano car at other company facilities and a detailed plan to relocate the plant and machinery to an alternate site is under preparation,” Tata Motors warned Tuesday night.


More Coverage: Bloomberg BusinessWeek Business Standard

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