A first look at the world's cheapest car, Tata's Nano, 10 Jan 2008

Clashes have broken out in eastern India, one day after India's Tata Motors suspended work at its factory to build the world's cheapest car. Police say supporters of the plant, on Wednesday fought with members of the local Trinamool Congress party, who have been protesting outside the Singhur facility in West Bengal state for several weeks. 

Opponents of the plant say farmers in the area were not fairly compensated for the land Tata is using for the factory. Tuesday, the auto-maker announced it was planning to relocate the plant away from West Bengal because of continued confrontation and agitation at the site. Today, police say a man with two sons who worked at the factory committed suicide. Meanwhile, hundreds of information technology workers marched with black cloths over their mouths in West Bengal's capital, Kolkata, in support of Tata. The factory was set to produce Tata's new "Nano" cars, which are priced at just 25-hundred-dollars.

Tata Motors has issued notice that it would not be able to continue with its small car factory in the atmosphere of intimidation and violence.

The factory is likely to to be shifted some other state. This is the biggest blow in Bengal`s effort for industrialisation. The only light of hope is the Bengal Governor`s initiative to bring all parties to talks table and find a quick solution.

Gautam Gupta has more on the story.