Ahmedabad, Tata Motors could announce the rollout of its Nano car from Gujarat Tuesday, the day Chief Minister Narendra Modi celebrates his seventh year in office, according to a government official here.

"Modi will not like to make a premature announcement. Only after the cabinet meeting (expected to continue till the afternoon) will an announcement be made," said the official. "Only a few officials are aware of this development."

Over the past few days, Tata Motors officials have scoured various sites - in Karnataka, Andhra Pradesh and Gujarat - after announcing its pullout from Singur in West Bengal over a protracted land dispute.

In Andhra Pradesh, officials from the auto major were greeted with protesting farmers, similar to the dissidence that had unfolded in Singur over the past few months.

Speculation that the company had finally chosen Gujarat for the project to manufacture Nano, the world's least expensive car at Rs.100,000 ($2,225), gained ground after Tata officials arrived here Monday evening to take one final look at a site near Sanand, 25 km from Ahmedabad.

Tatas could be needing about 2,000 acres for the project, and officials said 1,000 acres can be handed over immediately.

The land falls within a 2,200-acre plot owned by the Anand Agriculture University, which currently serves as a cattle farm. The university has given away 1,000 acres back to the government, and it seems half the battle has been won for the Tatas.

The question is: Does Modi's red carpet welcome include special incentives? Past governments in Gujarat have provided special sops to mega industrial projects to attract investments.

Andhra Pradesh and Karnataka governments too have promised concessions, including free-of-cost land.

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