A day before the launch of the Nano on March 23, the Uttarakhand government said Tata Motors [Get Quote] had agreed to set up a permanent satellite plant at its Pantnagar facility for producing the small car.

"Tata Motors has given us a commitment that it will set up a permanent satellite facility at Pantnagar for producing Nanos," Chief Secretary Indu Kumar Pande told Business Standard.

From the Pantnagar industrial unit, from where the company would launch its first car, Tata Motors is planning to produce a total of 50,000 units per year, Pande said.

Tata Motors was given over 1,000 acres at Pantnagar by the state government for setting up its manufacturing facility.