Tatas are understood to have decided to set up the Rs 1-lakh Nano car project in Gujarat, an announcement for which is expected to be made anytime.
A state government official in the know of the development said Tata Motors have accepted the proposal to set up the project at Sanand near Ahmedabad.
The official said the state government has offered 1,000 acres, including 80 per cent of its own land to Tatas, who earlier this week closed shop in West Bengal. No comments could be obtained from Tata Motors
Announcement for the project in the state is expected to be made jointly by the Chief Minister Narendra Modi and Tata officials.
Ever since the Tatas faced political resistance in West Bengal for their project at Singur various state governments, including Karnataka and Andhra Pradesh, have made offers for locating the small-car project in their territory.