Tata Nano

Why Tata had

chosen West
Bengal for setting
up its Nano
production
facility?

By Rajat R Gowardhan
Preview :
 Introduction

 Need for a new plant

 Why was West Bengal chosen

 Conclusion
Introduction to the product
‘Tata Nano’
 Low cost car

 Large sales volumes targeted

 Large scale production

 Aim to Export
Why a new Plant ?
 Volume Requirement

 Strategic decision:

 Nearness to raw materials

 Connectivity

 Proximity to ancillary units

Why West Bengal?
 Nearness to source
of raw material
 Availability of
required Size/Area
of land
 Government
Subsidies
 Connectivity via
Road, Sea
 Cheap labour.
Nearness to source of raw
material
 Singur close to Tata’s
traditional base and
nursery for new
enterprises, the Tata’s
network of iron and
steel industries in the
region of
Jamshedpur, in
Jharkhand.
 Singur - Jamshedpur
280 Kms. (approx)
Government subsidies
 100% exemption from Excise Duty for 10
years
 100% exemption from Corporate Income Tax
for first 5 years and 30%
exemption for next 5 years
 650 acres of land on lease for 90 years @
Rs.8,000 per year per acre for first 45 years,
Rs.16,000 per year per acre thereafter
 Power Subsidy
Availability of required
Size/Area of land
 997 acres of land assured by West Bengal
Government
 645.67 acres of land for mother plant

 Plans to have ancillary units in the same

area
 Schools, hospitals, training facilities etc
also to be built
Connectivity
 Connected by NH-2 New Delhi Kolkata
National Highway

 Connected to Gujarat, Maharashtra,

Chhattisgarh, Orissa and Jharkhand by
NH-6

 Haldia Port for overseas exports

Cheap Labour
 47.3% Unemployment prevailing in state

 17.9%employed work for less than

Rs.1000/month

 Poor working conditions

Conclusion
 Thank you

Thank you.