7th Oct 2008 : AHMEDABAD: After a controversial stay in West Bengal, Tatas on Tuesday shifted their Rs

one-lakh car Nano project to Sanand near Ahmedabad at an investment of Rs 2,000 crore, declaring that
efforts will be made to roll out the world's cheapest car from a make-shift plant to meet the deadline.

"This is an extremely momentous and happy day for us because we have been through a rather sad
experience from a small quarter of residents of West Bengal despite the state government's efforts," Tata
Group Chief Ratan Tata said at a joint press conference with Cheif Minister Narendra Modi.

The MoU was signed by Tata Motors Managing Director Ravi Kant and Industrial Secretary Gouri Kumar

Praising Modi for speedy allocation of about 1,100 acres of centrally located land, Tata said the company
had a great deal of urgency in having a new location and was driven by the reputation of the state.

"The site in Gujarat, already under the possession of the state government, will help Tata Motors
establish a new dedicated mother plant with the shortest possible time lag and least possible increment
project cost," he said.

Together with Tata Motors, about 60 vendors would also move to the new location.

Asked about the over-all deal offered by the Gujarat government, Tata said, "it is as good as or slightly
better than the one we had previously (in West Bengal)."

Gujarat was one of many states in the race for Nano car manufacturing facility. Welcoming Tatas, the
Chief Minister said, "Tatas and Gujarat have started a new chapter of partnership which will give a new
direction and dimension to the state.”After the Nano car project, Gujarat will make an important place in
surface transport."

To begin with, Tata Motors would produce 2.5-3 lakh cars annually and the capacity is expandable up to
five lakh cars per annum, Tata said.

When asked about the timing of launching Nano, Tata said, "It will be our endeavour to be close to the
timeline so that we can keep our promise."

He, however, did not specify any timeline and said the company would make an announcement in this
regard later.

"Building this plant in Gujarat will take some time and we have some make-shift plan to introduce Nano
 in the market in the interim month while the plant is being built," he said.

A company statement said it would explore the possibility of manufacturing Nano at its existing facilities
in Pune and Pantnagar and would launch the car in the last quarter (Jan-March) of the current financial
year.

Meanwhile, reports from Uttarakhand said 'limited production' of the world's cheapest car will take place
in Pantnagar.

14549463.doc
TATA MOTORS PROFILE:
Tata Motors Limited is India's largest automobile company, with revenues of Rs. 32,426 crores
(USD 7.2 billion) in 2006-07. It is the leader by far in commercial vehicles in each segment, and the
second largest in the passenger vehicles market with winning products in the compact, midsize car
and utility vehicle segments. The company is the world's fifth largest medium and heavy
commercial vehicle manufacturer, and the world's second largest medium and heavy bus
manufacturer.
The company's 22,000 employees are guided by the vision to be "best in the manner in
which we operate best in the products we deliver and best in our value system and ethics." Tata
Motors helps its employees realize their potential through innovative HR practices. The company's
goal is to empower and provide employees with dynamic career paths in congruence with
corporate objectives. All-round potential development and performance improvement is ensured by
regular in-house and external training.

14549463.doc

CHAIRMAN’S PROFILE
Mr. Ratan N Tata (Chairman)
Heading the Tata Group since 1991, Ratan N Tata is the Chairman of Tata Sons, holding company
of the Tata Group, and major Group companies including, Tata Motors, Tata Steel, Tata
Consultancy Services, Tata Power, Tata Tea, Tata Chemicals, Indian Hotels, Tata Teleservices
and Tata Auto Comp. He is also Chairman of two of the largest private sector promoted
philanthropic trusts in India. During his tenure, the Group has further expanded its global reach,
with its revenues growing over six fold to Rs 97,000 crore ($21.9 billion).
 There is a lot riding on its small wheels. If the yet-to-be-named car is a success when it goes on
sale next year, it would herald the emergence of Tata Motors on the global auto scene,
mark the advent of India as a global center for small-car production and represent a
victory for those who advocate making cheap goods for potential customers at the
"bottom of the pyramid" in emerging markets. Most of all, it would give millions of people
now relegated to lesser means of transportation the chance to drive cars. It is a hugely
ambitious project rivals have called it impossible for any company. But it is

More and more can, but Indian car buyers today represent a tiny slice of a potentially giant
market India has just seven cars per 1,000 people. India's auto industry has grown an
average of 12% for the past decade, but just 1.3 million passenger vehicles were sold in
India in the fiscal year ending March 2006. That means a billion Indians buy about the
same number of cars in a year as 300 million Americans buy in a month.

He is still personally driving the People's Car project. It is a rear-engined, four-door, four- seat
car that will get around on 33hp more pep than the Model T or the VW Beetle had when
they drove onto the scene. The cheapest versions won't have air-conditioning or power
steering, but Tata hopes its cute looks will make up for missing creature comforts just as
happened with the VW Beetle and the Mini long before it.

Tata Motors has not released a photo of its prototypes, but Ratan Tata, a trained architect with
a penchant for designing consumer goods, sketched its outlines for a reporter's eyes only.
He drew an egg-shaped car with a ceiling high enough to handle his tall frame. He
pointed proudly to the air intake scoop in front of the rear tires and the vertical taillights
similar to those found on the Tata Indica. Under the front hood it will have a small storage
space, "like an overhead bin" on an airplane, Tata says. "It is not as small as a Smart," he
says. "It is not a car with plastic curtains or no roof it's a real car."

the Tata Group is on a strong footing,

contributing more than 3 per cent to India's GDP. Nano, being the world's cheapest car,
has made international players sit up in amazement and the company has received
proposals from some African, Latin American and Southeast Asian countries to
manufacture the car there. Euro IV compliant cars, which the Tata Nano is, produce one (1)

gramme of carbon monoxide and 0.08 gramme of nitrous oxide. To convert them into CO2
equivalent, a conversion factor recommended by IPCC (Intergovernmental Panel on Climate
Change) of which Mr. Pachauri is chairman, is applied. It is 3 for carbon monoxide and 310 for

nitrous oxide. Once the entire math’s is done, we get 30 grammes per kilometer.
So each time the Tata Nano moves a kilometer, it will release 30 grammes of CO2 equivalent
material into the atmosphere. This is 40% less than what all others cars produce (50
grammes/kilometer or more) — and there are more than 5 million cars in India today. But let us take
the argument into a zone where the naysayers would be comfortable: on the total amount of CO2
equivalent that Tata Nanos will produce over the next five years. This involves a bit of some
assumptions.
observed families riding on two-wheelers — the father driving the scooter, his young kid standing in
front of him, his wife seated behind him holding a little baby. It led me to wonder whether one could
conceive of a safe, affordable, all-weather form of transport for such a family,” Tata said
At the site of the plant in Singur, West Bengal, where the first Nano will roll out, it is a race against
time. Over 2500 people have been working in two shifts behind a guarded perimeter to complete the
factory in time. Soon another shift will be introduced to make up for any backlog in work caused
during the last heavy monsoon.
"Work will soon start in three shifts. Over 75 per cent work of the factory is complete and we hope by
September of this year the first car will roll out of the factory,"' a top official of West Bengal Industrial
Development Corp (WBIDC) told The Indian Express.
Next to the 645-acre plot that will have the main car plant, a vendor park is coming up on 290 acres
to house the proposed 55 ancillary units. Already, 14 have started setting up theirs. These include
Lord Swaraj Paul-owned Caparo Engineering Pvt Ltd, Rasandik Engineering Industries Indian Ltd,
Rucha Engineers Pvt Ltd and Sharda Motor Industries Ltd. While Rasandik has plans of investing Rs
55 crore in the first phase of work at the vendor site, Rucha Engineering has committed Rs 50 crore
for their facility at the vendor park. WBIDC has set up a camp office at the project site where so far
2432 persons from displaced families have got their names registered.

The protestors are complaining about land seizures for the factory.

"We will continue our stir till we get back our land," 70-year-old Laxman Das, a farmer who lost two acres to the
factory, told local television.
More than 2,500 police guarded the plant.

The government said it is impossible to return land to the farmers but it is willing to consider a rehabilitation package
and even identify other farmland for them.

"I am confident everything will resolve and the car will roll out in October," said Sandipan Chakravortty, managing
director of Tata Ryerson, a joint venture company owned by Tata Steel and Ryerson of the United States.

On Friday, Ratan Tata, chairman of the Tata Group, threatened to move the factory out of West Bengal state
because of violent farmer protests and strong political opposition.

The pint-sized Nano, priced at $2,500, was scheduled to go on sale by the end of the year, but if Tata pulls the
factory out of West Bengal, the much-anticipated car would likely be delayed.

Tata made international headlines when it announced the Nano's bargain-basement price and unveiled prototypes in
January.

But the plant has sparked protests by displaced farmers who say they haven't received proper compensation and
opposition politicians who accuse the company of taking advantage of the rural poor.

"If the state for any reason ... feels that we are exploiting them, if that is the feeling, we will exit," Ratan Tata told
reporters Friday in Calcutta.

"We can't operate the plant with police protection," he said, adding that protesters have attacked Tata employees and
stolen equipment from the factory site.

Tata did not say when he would decide whether to leave, and he did not address how the move would affect
production of the Nano.

West Bengal has been the center of a national debate about acquiring farmland for factories in India, where about
two-thirds of the more than 1 billion people live off agriculture.

The controversy came to a head last year when police gunned down 14 protesters in Nandigram, a nearby district in
West Bengal, causing an outcry that eventually scuttled a planned special economic zone designed to draw foreign
investment.

Tata has the support of the communist government that has ruled West Bengal for three decades, but a coalition of
opposition parties has strongly fought the project because it opposes using fertile farmland for industry.

Tata has also had to fend off angry farmers who claim not to have received proper compensation for the 997 acres
Tata acquired in Singur, a village 20 miles northwest of Calcutta.

Mamta Banjeree, chief of the opposition Trinamool Congress party, which has led the fight against Tata, called Friday
for the company to return 400 acres to the farmers.

The Federation of Indian Chambers of Commerce and Industry issued a statement urging politicians to work together
to keep Tata in West Bengal. It called the Nano plant "a dream project for the state" that would create jobs and attract
other companies looking to invest in manufacturing.