Within days of exiting from West Bengal, Tatas have decided to relocate their Rs 1 lakh-Nano car project in Gujarat, after scouting many sites including that Karnataka and Andhra Pradesh.

Tata Group Chief Ratan Tata and the Chief Minister Narendra Modi would jointly announce the project in the state later in the day, officials said.

Tatas have identified the site at Sanand, near Ahmedabad, where the state government will give 1,000 acres land from the Anand Agricultural University for housing the project.

The new project site was finalised last evening after yet another visit by the Tata Motors [Get Quote] officials, who in the last few days had scouted for possible locations in many other states.

Agreement to be singed shortly

A agreement will be signed between Tata Motors and the Gujarat Government on Tuesday evening for setting up of the Nano project in Sanand, a state government official said.

"Tata Group Chairman Ratan Tata will arrive in the city (Ahmedabad) at around 1530 hours, along with Tata Motors' managing director Ravi Kant and meet the chief minister. They will sign the Memorandum of Understanding at around 1730 hours in the evening," Information Commissioner Bhagyes Jha said.

The project will be set up in Sanand, 30 kms from the city, on the land of Anand Agriculture University (AAU). The AAU had 2,220 acres of land at the site, which has been transferred to the state government.

Out of that land 1,000 acres of the land would be given to the Tata Motors, officials said.

The Tatas after exiting from Singur had explored many destinations in different states and has finally chosen Sanand.

The land of Sanand, which has been offered to Tatas, is considered to be ideal for the project as it is just a few kms form Ahmedabad and is on National Highway.

Ever since the Tatas faced political resistance in West Bengal for their project at Singur various state governments, including Karnataka and Andhra Pradesh, were in the race to woo Tatas to set the manufacturing facility for the cheapest car in the world.

The state government has offered three sites for setting up of Nano plant in Gujarat. They are in Mundra in Kutch district, Sanand in Ahmedabad district and one site in Surat district.

The land offered to Tata at Sanand which is around 30 kms from the city, belongs to the Anand Agriculture University (AAU).

The AAU had set up an agriculture farm on that land. AAU officials told PTI that they have already transferred the land rights of the 2,220 acres of land to the Gujarat government.

The land of Sanand which has been offered to Tatas for the project is considered to be ideal for the project as it is just a few kms form Ahmedabad and is on National Highway.

Gujarat Chief Minister Narendra Modi had on Monday night said, "The decision on setting up of the plant for Nano is to be made by the Tatas. They have gone to seven to eight states and they are exploring various sites."

Incidentally, Modi completed seven years as chief minister on Tuesday.