Tata Motor

Tata Motors' plant for the Tata Nano at Sanand, located in the Ahmedabad district of Gujarat. The capacity of the plant, to begin with, will be 250,000 carsper year to be achieved in phases, and with some balancing is expandable up to 350,000 cars per year. Provision for further capacity expansion has also been incorporated in this location. Built in a record time of 14 months starting November 2008, the integrated facility comprises Tata Motors' own plant, spread over 725 acres, and an adjacent vendor park, spread over 375 acres, to housekey component manufacturers for the Tata Nano. In line with latest world-class manufacturing practices, the Sanand plant has been equipped with state-of-the-art equipment. They include sophisticated robotics and high speed production lines. The plant has energy-efficient motors, variable frequency drives, and systems to measure and monitor carbon levels. These are supplemented with extensive tree plantation, sustainable water sourcing through water harvesting and ground water recharging and using solar energy for illumination; all of this helps the plant to be more sustainable. In June 2010, the first Nanos made at the plant rolled out from its main manufacturing plant at North cote Cattle Farm. The construction time was a record breaking 14 months. Thecost amounted to 20 Milliard Indian Rupees (Ca. 20 Milliard Euro). During the starting period the production plant employed 2.400 staff. Including the indirect jobs around the plant there were about 10.000 people depending on the initial production. The plant has a capacity to manufacture 250,000 cars a year in the first phase, which will be scaled up to 500,000 cars a year. The project, including the main plant, vendor facilities and a railway transportation hub near Nidhrad Village, will together generate over 20,000 direct and indirect jobs. This plant uses land from Gujarat Agricultural University which was in the name of the Government of Gujarat. Sanand Land Controversy The 1100 acres of land which was allotted to Tata Motors falls in the villages of Khoda and Bol in Sanand Taluka. According to one report: Immediately after the Sanand Plant deal was sealed, Gujarat Industrial Development Corporation had notified six villages for acquisition in Sanand. Farmers initially were under the impression that the authorities would take away their land for free. In distress, about 3,000 of them protested. The government explained that it was not trying to get their land for free, declared the price of the land at Rs 1,200 per square meter (US$ 108,000 per acre), four-times better than the market price. The opposition crumbled, farmers enthusiastically cooperated with the government, and agreed to the acquisition. Post-acquisition, the locals claimone of the biggest gains to come out of the Nano project is that the environment in our village has improved drastically. The Gujarat government has placed significant efforts into preventing pollution and improving environmental quality in Sanand. It has given notice to factories, small as well as large, that emit high levels of pollution in the area to either leave or treat the pollutants. This has been well received by rural communities around Sanand. Tata Motors paid Rs 900/sqm (US$ 81,000 per acre) to the Gujarat Government for the landin Sanand. Automotive manufacturing is a globally competitive industry. For context purposes, the price paid by Tata may be compared with land prices elsewhere in the world: According to The Financial Times, in 2008, the farmland prices in France were Euro 6,000 per hectare ($2,430 per acre; IN Rs. 1,09,350 per acre).According to the United States Department of Agriculture, as ofJanuary 2010, the average farmland value in the United States was $2,140 per acre (IN Rs. 96,300 per acre). The farmland prices in the United States varied between different parts of the country, ranging between $480 per acre to$4,690 per acre.