MUMBAI: Tata Motors said Monday that it would not start work at the site for the factory to build the low-cost Nano car model, where work was suspended last week, until it was confident of smooth operations and the continued viability of the project. Tata, the top Indian vehicle maker, said it was "distressed" at the unclear outcome of talks between the government of West Bengal State, where the Nano plant is located, and the protest leaders who had caused the disruptions. "Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant," the company said. "We will review our position only if we are satisfied that the viability of the project is not being impinged, the integral nature of the plant and ancillary units are being maintained and all stakeholders are committed to developing a long-term congenial environment for smooth operations of the plant." In Singur, about an hour's drive from Calcutta, camps and makeshift stages that had been set up for the protest have mostly been dismantled, and the expressway that had been blocked for days with backed-up trucks saw normal traffic flow on Monday. Shares in Tata Motors closed 3.9 percent higher at 436.45 rupees, or $9.80, after having risen as much as 6.7 percent in early trading. "The shares are getting a boost, as it looks like the confusion is beginning to get cleared and a resolution will be arrived at soon," said Ramnath S, a vice president of research at IDFC-SSKI Securities. "But if this drags on any further, there may be delays." Farmers in Singur, who had forced Tata Motors to suspend work last week, said Sunday that they were ending their protest after the state promised to return some land. Existing Tata Motors plants are expected to make up for any shortfall caused by the disruptions to the Singur plant, which was scheduled to have an initial capacity of 250,000 units. Tata Motors said last week that it was looking for alternative sites. "They clearly have a way to build the car elsewhere, but moving to an alternate location means they can't start off with 250,000 units of dedicated capacity for Nano," said Ian Fletcher, automotive analyst at the research firm Global Insight in London. The Nano, billed as the world's cheapest car, is expected to be priced at little more than 100,000 rupees, or $2,240. Other carmakers, including Bajaj Auto in alliance with Renault and Nissan, as well as General Motors, Ford, Fiat and Toyota, have also announced plans for low-cost cars for emerging markets. The trouble in Singur began after the government took over 1,000 acres, or 400 hectares, of farmland for the factory last year. The government offered compensation, but some farmers rejected it while also demanding that at least 400 acres be given back. The protests in Singur reflect a standoff between industry and farmers in a country where two-thirds of the population depends on agriculture. The conflict has led to calls for reform of a colonial-era land acquisition act that has blocked some industrial projects.