Tata Motors has been constrained to suspend the construction and commissioning work at the Nano plant in Singur in view of continued confrontation and agitation at the site. This decision was taken in order to ensure the safety of its employees and contract labour, who have continued to be violently obstructed from reporting to work.

The company has assessed the prevailing situation in Singur, after five continuous days of cancellation of work, and believes that there is no change in the volatile situation around the plant. The project's auto ancillary partners, who has commenced work at their respective plants in Singur, were also constrained to suspend work in line with Tata Motors' decision.

In view of the current situation, the company is evaluating alternate options for manufacturing the Nano car at other company facilities and a detailed plan to relocate the plant and machinery to an alternate site is under preparation. Some of the international consultants working on the plant have returned home and the construction work in the plant has been stalled since 28 August 2008. Further, several persons engaged in the construction and commissioning work who had taken accommodation at Singur and nearby areas have since vacated and have gone away due to intimidation and fear.

Construction of the Nano project comprising of the Nano manufacturing facilities and the vendor park, a normal feature in modern world-class auto plants, commenced in January 2007. During construction, the project employed about 4,000 employees at its peak including several hundred young residents from and around the region.