Singur Nano project plans intact

2 Jul, 2008, 0102 hrs IST,Sutanuka Ghosal, ET Bureau

KOLKATA: Sporadic scares about the Singur Nano project being jeopardised beyond redemption appear somewhat unfounded, according to reports emanating from within. An ET probe reveals that Tata Motors has sent a production schedule to its vendors. And this schedule indicates that between October 2008 and March 2009, Tata Motors plans to manufacture a cool 50,000 Nanos at Singur. Nano is slated to hit the road by early October.

What’s more, Nano production schedule at Singur for fiscal 2009-10 is also ready and vendors are totally in the loop. A source said that from April 1, 2009, the company aims to produce 1,200 Nanos per day, which will take capacity to 4.38-lakh cars per annum. Incidentally, the company had announced that the initial capacity of the plant would be 2.5 lakh per annum which could be scaled up to 5 lakh per annum depending on the demand curve.

ET spoke to a cross-section of frontline Nano component suppliers to get a sense of the preparedness at Singur. For instance, Rucha Engineering circles said: “Vendors have been asked to start production at our Singur units at the earliest. In fact, we had a meeting with the Tata Motors management recently where we were told to expedite work at our upcoming Singur facilities.”

Sources at Sharda Motor Industries, another auto component unit, said: “Work in our Singur components plant is in full swing to meet the Nano production schedule.” Another vendor added that he has been told to supply components for some 100 Nanos that are being readied at the Pantnagar plant. “The indication is that Pantnagar may become a satellite manufacturing hub for Nano in the next three years,” he said.

While Tata Motors is gearing up to kick off its trial production at Singur, the West Bengal government has started providing loans to the auto component units setting up shop there. Rucha Engineering, which will provide complex assemblies of sheet metal and tubes for Nano’s interiors, has received a Rs 24-crore term loan from West Bengal Industrial Development Corporation (WBIDC).

“Another four loan applications are being processed now,” said a WBIDC official. Incidentally, 55 auto-component companies are setting up units at the Singur vendor park at a capital investment of Rs 2,500 crore.

Meanwhile, TML has appointed 232 ITI trained youths from landloser families as apprentices, who are likely to be absorbed by the company after 18 months. WBIDC will shortly select another 200 youths who will be trained at ITIs.

source: economic times