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Tata Motors which is building the plant to launch the Rs 100,000 car, has faced violent protests and political opposition over the acquisition of farmland in Singur, an hour's drive from Kolkata.
"There has been no improvement in the ground situation so far, hence the conditions are still not conducive for resuming work today," a Tata spokesman said in an e-mailed statement.
"We continue to assess the situation closely."
Last week, Tata Motors Chairman Ratan Tata said he was prepared to move the plant from Singur if violence continued, despite having invested $350 million in the project.
Trinamool Congress supremo Mamata Banerjee has threatened to organise state-wide demonstrations.
On Friday, thousands of Trinamool supporters blocked roads and shouted slogans against the government, bringing traffic to a halt in the heart of Kolkata.
West Bengal Chief Minister Buddhadeb Bhattacharjee said he was ready for talks with farmers but could not return 400 acres of land, earmarked for ancillary units, because it would make the project unviable.
Tata Motors has since been flooded with offers from other states for the Nano plant.
Shares in Tata Motors have fallen about 40 per cent from the start of the year, underperforming the broader stock market which has declined nearly 30 per cent in 2008.


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why cant mamata understand that what she gained in nandigram( public sympathy)-she is losing in singur .please don't play a puppet in the hands of Naxals.The farmers issue can be strongly bargained and genuine gains can be achieved.just don't stick to egoistic demand.
Youths of WB / India urge to Mamata-Naksals-AmarSingh combine to end the Singur "seize" immediately .. enough is enough. End the ill-drama and concentrate to othe problems in States and country .. India is to go long way to prosper.
What Ms Mamata Banerjee is doingin Singur is deplorable and has been condemned in Bengal overwhelmingly. But let no one pretend that decision of a proffessionally managed company like TATAs was taken for the love of Bengal. There must have been solid industrial and commecial considerations behind selection of Singur as the site. Therefore, ata's threat of withdrawal is good as fare as it builds up public opinion against TMC. In fact one would say Singur agitation has it's brighter side. It has brought to fore mood of bengal to shun the path of agitation and support re industrialisation. Significantly, no less a person than Budhadev Bhattacharya gave expression to this by his very courageous and very anti party statement on Bandhs. TATAs and the rest of the industrial community must see the opportunities in this change in attitude and contribute to sustain it. It is naive to be arrogant and say 1500 cr does not matter. Mr. Tata must tell if his management had considered contingencies due industrial relation situation in bengal and what CPM as still the leading force far aead of both TMC and INC singly and taken together can contribute by promoting harmony in industrial relations. One is convinced that singur can serve as the context for paradigm shift in work culture of industrial forces and trade unionists.
1500 Crore is not a big deal for TATA. Tata Moving the project out of Singur is a slap on the face of W.B. The educated folks of W.B need to step up now and convince the farmers that they need to look out for the growth of their economy and have to look ahead. Dont they want to have a good infrastructure. The govt of W.B need to step up and allot land to those farmers elsewhere.
Tatas should have pulled out of west bengal in 2006 itself. Mamata went on fasting even before the bhoomi-bhuja. Now its a ego between Tata and Mamata. Chennai is the best place considering the well established auto ancillary industry already in place. Tatas could have utilised already existing units rather than taking lands for these units also, that too supposedly fertile lands from unwilling farmers,
I can smell some international conspiracy in this, and I am sure some international car makers must have bribed the politicans to see Nano go down, and they have succeeded.No one seeks my advise, but I will still say, TATA should consider setting up the Nano Plant in some other State or even in a third world country.