Land Dispute in India may Delay $2,500 Tata
India’s Supreme Court will examine the validity of the process by which land has been acquired for Tata Motors Ltd.’s Nano car project at Singur in the eastern state of West Bengal, following a petition challenging the venture, Bloomberg News reported today.
The Supreme Court bench asked Tata Motors, the state-run West Bengal Industrial Development Corp. and the West Bengal government to file replies to a petition which said that fertile land had been forcibly acquired by the government.
The challenge may delay the company’s plans to start selling the car, pegged to cost around $2,500, this year in India. The delay would push up costs and allow rivals to catch up with Tata Motors with plans of their own to build and sell cars with a similar price tag. The company plans to start production in October.
Source: Detroit News Wire Services