With the October launch date for the Rs1-lakh car almost in sight, but without any signs of a settlement at Singur between the CPM-led Left front goverrnment and Mamata Banerjee's Trinamool Congress, Tata Motors is reported to have finally given up on Singur and has started moving its equipemnt from its factory premises.

Work at its Singur project site had ground to a halt earlier this month due to violent protests by agitating farmers dmanding a better rehabilitation package for their land (See:Tata Motors backs new Singur package) and a decision to shift at this juncture barely a month ahead of the launch would be a major upheavel for the company at his juncture, which it is resigned to. 

Citing unnamed government officials, The Times of India today reported that though talks between the West Bengal government and Trinamool leaders backing the farmers were still continuing, day before yesterday's attack on two security guards posted at the at the factory may have precipitated Tatas into finally opting out of West Bengal.

Busines channel IBN Live, also quoting unnamed sources, said that the Tatas had started moving equipment and plant parts from the site to an undisclosed location 10 days ago. Vendors have also removed their equipment.

Earlier, NDTV Profit business channel had said Tata Motors couild formally announce its decision to move out of Singur next week unless something dramatic happened "very soon".

Tata Motors has declined comment.

Meanwhile, the Karnataka government has sought an ''early appointment'' with Tata Group chairman Ratan Tata, ''to take forward the negotiations on relocating the Nano project to Dharwad,'' minister for large and medium industries Murugesh Nirani said.

Tata officials are reported to have visited two sites near Dharwad which could be offered for the project.

At the time of suspending work in Singur on  2 September Tata Motors had said it was considering alternate locations to make the Nano, the world's cheapest car.

The company is already building a commercial vehicle plant, in Karnataka and  Tata Motors' managing director Ravi Kant said at the time the mpany was actively looking at alternatives including Karnataka. Other states including Uttarakhand and Chattisgarh have also been wooing the Group for the Nano project.

CNBC-TV18, quoting sources, reported that the Tatas and the West Bengal government believe that the Singur project will not take off. It also said Tata Motors'  Pune plant will roll out 1,000 Nanos by mid-October, while the company would produce 100 Nanos per day from its Pantnagar site in Uttarakhand, from October. The Nano engines, gearbox will be supplied from Chikhli in Pune to Pantnagar, and a further ramp up at Pantnagar will begin from January 2009.

But the production rollout will be well short of the initial capacity of 250,000 vehicles at Singur.

In the meantime rising prices of hard commodites coupled with the delay in getting the Singur plant ready had led to cost escalation, though the Tatas are said to be determined to hold the price line to the promised price.

Reacting to Tata's reported pullout, science and technology minister Kapil Sibal said, ''If this happens then this is going to be a huge loss for the West Bengal government in terms of employment opportunities.''