Tata to start Nano production from Sanand factory soon
Posted by admin on Oct 11, 2009 in Recent Posts | 0 comments
Tata to start Nano production from Sanand factory soon
Tata Motors is working hard to commence Nano production from its Sanand factory by January 2010. In this connection, the company started to send reminders and orders to its vendors. Tata Motors is learnt to allot land to its 55-odd vendors at the facility in Gujarat. The company has asked its vendors to set up facilities by October. A Tata Motors spokesperson informed that the company is preparing the things to be needed in the facility from now. All the efforts has been began to produce Nano in time. The vendors has to work accordingly. Construction at the Nano site is running in full swing. Ever since the Gujarat High Court rejected two writ petitions filed by two farmers whose lands were allocated for the Nano project, construction activity has picked up steam. Most construction work is going according to plan and is expected to end within four months
A sub-contractor of Shapoorji Pallonji, who is involved in construction of the major part of the pre-engineering building, said that only 40% of the construction work is to be done that means 60% is already over. The vendors had been asked by Tata Motors to complete construction work as early as possible. The company will then set up the critical equipment and machineries for manufacturing the Nano. It may be recalled that the Narendra Modi government had allocated some 1,100 acres at Sanand to Tata Motors, right along the National Highway 8 that connects Kandla, Mundra and Dholera ports. A vendor said that land had been allotted to vendors on May 5 and it had been asked by Tata Motors to start work at once. Most vendors are busy talking to banks and financial institutions for funds required to set up their units. Tata Motors needs to generate volumes at the earliest as it can now produce only 50,000 Nanos at its Pantnagar facility. Total investment in the Sanand vendor park is pegged at Rs 2,000 crore, which will generate employment for around 4,000 people. It is to be mentioned here that Tata Motors has received 203,000 fully paid orders for the world’s cheapest car Nano last month. Meanwhile there were doubts about the production problems as the company has to provide cars to the customers as early as possible. It was feared that customers may cancel booking and would not like to wait for two years. It is to be recalled that Tata Motors promised to allot only 50,000 cars this year to the winners of lottery as it is the maximum capacity of its existing plant. So as a result a large number of customers have to wait for atleast for a year. Mahantesh Sabarad, an analyst at Centrum Broking in Mumbai said that ,however, bookings exceed expectations but the company might not be able to retain orders going ahead. Now it is strongly feared that unsuccessful customers in the ballot can either cancel their order or leave the cash advance they paid with the company to earn 8.5 percent interest for the first year. Meanwhile, other car companies is also planning to produce small
