Due to the outbreak of shifting the unit for Nano production, Tata Motors has come forward to compensate its vendors who migrate to Sanand unit. The unit is to have an installed capacity of 3.5 lakh units a year and the production is likely to start from the Q1 2010. The vendors have expressed their outburst to have fresh investment once the unit was shifted to Sanand, as some of them had invested some amount in Singur West Bengal. But the Singur plant had to be dropped due to public protest.

Without revealing the nature of compensation , Tata Motors said the issue has been amicably resolved so that the vendors would start their business soon in Sanand. Yet some vendors like to continue with their current premises.Meanwhile the deserted land in Singur is likely to be converted for a1600MW power project, as suggested by a team of officials from the West Bengal government made an on-the –spot survey at Singur. The proposal is yet to be taken for consideration.