Tuesday, October 7, 2008

In the News: Oct 7, 2008

Tata Motors has decided to shift its Nano Car plant to Sanand, Gujarat. Gujarat CM Narendra Modi and Ratan Tata signed an MoU todayto that effect. The "people's car" will now find its home in India's most industrialised state after pulling out of Singur, West Bengal. Other states that were battling it out for the project were Andhra Pradesh, Karnataka and Uttarakhand, among others. Narendra Modi has guaranteed to the Tatas that bandhs and demonstartions will not affect the plant and has also offered tax concessions. [CNN-IBN]

The island-nation of Iceland has nationalised its largest bank amid fears that it could collapse under the credit crunch that has spread from America to Europe. Iceland's banking system is valued at nine times the country's GDP, with much of its holding in Europe and the US. Any Icelandic collapse could have a domino-effect on the rest of Europe. Iceland's central bank just has a few billion dollars and cannot save any of the large banks. There are reports that Iceland could have taken a substantial loan from Russia. [CNN Money]


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