(From left) A Nano; Ravi Kant at Writers’ Buildings on Saturday. Picture by Bishwarup Dutta

Calcutta, June 28: The Singur Nano project has overshot cost estimates by Rs 300 crore, Tata Motors said today and reaffirmed its resolve to roll out the small car from Singur.

Tata Motors managing director Ravi Kant said the company had already invested more than Rs 2,000 crore in the Singur project.

“I won’t like to talk about cost overrun, it’s an internal issue. Surely, there have been overruns because the whole project has undergone major changes. It was Rs 1,700 crore,” Kant said after meeting chief minister Buddhadeb Bhattacharjee at Writers’ Buildings.

“We have had many challenges, you know, starting from last year’s flood. We had to change our entire plan, raise the level considerably. Of course, it has escalated the project cost significantly,” he added.

Kant held a meeting with officials of the West Bengal Industrial Development Corporation (WBIDC) before calling on the chief minister.

“We have invested more than Rs 2,000 crore in this project. So you need to understand that we have put in so much of money, we will want this project to be coming out and having the rollout from Singur,” Kant said.

This is the third time the Singur project cost is being revised. In May 2006, Ratan Tata had announced an investment of Rs 1,250 crore. Last December, the figure was raised to Rs 1,700 crore (plus Rs 2,200 crore by 55 vendors).

The latest revision for the project that will make the Rs 1-lakh car comes in the middle of double-digit inflation and soaring oil prices.

The surge in steel prices, which fuelled concern among several vendors, was initially expected to be cushioned by the use of more plastic. However, the company decided to stick to steel following safety considerations and a rise in plastic prices.

Ever since inflation started to rise, auto industry analysts have been wondering whether the Nano would stick to the Rs 1-lakh price tag or partially offset the spurt by offering a limited number of cars for the amount.

Kant said the company was hoping to start trial production in some of the shops at the site by July and August. “Considerable progress has been made at the plant…. We are working at breakneck speed.”

Ready for dialogue

Referring to political opposition to the plant — Trinamul Congress supporters had yesterday pulled down a portion of the Singur wall — Kant said: “We want to work with everybody…. We are free for discussion with anybody…. (We) would like to welcome dialogue and discussion with anybody.”

Kant said Tata Motors was as much a resident of Singur and Bengal as anyone else. “So if somebody may say are you a citizen of India? I say yes; are you a citizen of West Bengal? I say yes; are you a citizen of Singur, I am saying yes.”

Asked for a reaction, Mamata Banerjee said she was ready to initiate a dialogue with the Tatas, provided the land “forcibly acquired” was returned to farmers.

She iterated that her party would launch an indefinite dharna in front of the plant from August 20.