Aware that Durga Puja — the state’s most-awaited festival — is two days, Tata said: “Perhaps, it was not the best day to announce such a decision — on the eve of the Pujas. But we do not see any change in the horizon.”

This announcement came after a meeting with Chief Minister Buddhadeb Bhattacharjee and Industries Minister Nirupam Sen.

Looking visibly upset, Tata said: “The decision to move out the Nano plant was taken with great pain. It shatters many dreams we had. But at the end it’s a great feeling, too. Great, because we feel we are doing the right thing.”

Sources said that although Bhattacharjee and Sen were aware they were fighting a losing battle — with Mamata not yielding an inch — the finality of today’s announcement came as a severe setback. Especially when the Chief Minister had made the Nano project the prime showpiece of his attempts to put what he boldly called the “wasted years of the state” behind.

Blaming Mamata’s ‘‘destructive agitation,” Sen said: “It is the saddest moment for the state on the eve of festivity.” Late at night, a group of villagers in Singur set up a road block on the Durgapur Expressway protesting against Tatas’ decision and threatened an indefinite blockade condemning Mamata Banerjee.

Asked where he planned to shift the Nano plant, Tata said that the company had offers from several states. “We have just taken this decision to shift today. We have not decided on where to shift. But, hopefully, there are locations with congenial environment. We do not have this kind of agitation either in Pantnagar or elsewhere,” he said.

“We have to shift because of Mamata Banerjee, not because of any other reason created by the government,” he said. “Banerjee publicly said that people of West Bengal decided that you should not be here.”

Asked what transpired at the hour-long meeting today he had with state Chief Minister, Buddhadeb Bhattacharjee, Tata said: “He was distressed. He was very persuasive that we do not move out of Singur. But I had to explain that we cannot run a plant when boundary walls are broken, we cannot run a plant with intimidation, we cannot run a plant with employees being assaulted, we cannot run a plant with police protection. At the end, whatever the loss or cost, we have to move out.”

“He (Bhattacharjee) finally conceded,” Tata said. “The decision to move out was ours. We parted as friends. We will continue to look at West Bengal in our future investment plans even if Nano moves out of Bengal...We believe and respect the trust, faith and confidence in Bhattacharjee’s leadership. It has not diminished. I have assured the CM about future investments in Bengal. We continue to be bullish about what can happen in Bengal,” Tata said.

He added that there was a need to understand why Tata Motors came to the state. “The Nano project was to be a showcase plant which would have enhanced the visibility of the state, created jobs for younger citizens and through the company’s community programme would have enhanced the quality of life of the urban and rural population.”

He said that those Singur residents who are being trained would become part of the Tata Motors family. “They will be deployed in other Tata facilities. They obviously can not remain in Singur,” he said.

“Like our Prime Minister, I was hopeful for satisfactory solution until the last moment. I feel very sad,” said West Bengal Governor Gopal Krishna Gandhi, who had tried to broker a peace that never took shape.

Reacting to the decision, Mamata said it was a conspiracy by the West Bengal government and the Tatas to push her into a corner.

Trinamool Congress supporters in Singur are to hold a victory rally tomorrow. Banerjee also renewed her demand for return of land to the farmers.

Ratan Tata

The decision was taken with great pain. It shatters many dreams...We have to shift because of Mamata Banerjee, not because of any other reason created by the government

Buddhadeb govt

Mamata's destructive agitation drove them out...This is saddest day for the state on the eve of festivity

Mamata

Conspiracy by Tata and Buddhadeb to push me to a corner

Why this is a serious blow to Buddhadeb

• Mamata may be villain of the piece but fact is after the Nandigram bungle, the party and the govt couldn't assert themselves in Singur despite a favourable court order, despite a majority of the farmers on board.

• With 85% of the Nano plant complete, it was the only tangible, visible project. That's gone.

• Buddha's entire emphasis has been on inviting investment, promoting industry. Singur ghost will haunt him at every forum on industry. The fact that Nano was a global, not just an Indian, story has added to the damage.

• First time in over three decades, CPM's political clout rendered ineffective in the state

•What next

• Buddha will have to fast forward Jindal Steel Plant, several other integrated steel projects, Bengal aerotropolis project (air port and industrial park), IT and Bio-tech, food processing units.

• Growing dissent in CPM as they see a weakened Chief Minister; Mamata supporters smell blood