The profit made by the rickshaw wallahs in India is simply unimaginable. If a part of it comes by cheating commuters, the rest of the money just explains how much we Indians depend on the rickshaws. So, now that we know everybody is so dependent on such a transport facility, why not go for a better ride? That’s exactly what the government has begun thinking.

Transport minister R Ashoka has said that the government is thinking of purchasing 10,000 Tata Nano cars and renting them out in Bangalore. The profit would be shared. While the government enjoys 40 per cent of the profit, the driver can enjoy the remaining 60 per cent. The government may invest for the cars from its own resources or take loans.

The arguments concerning the viability of the Nano replacing auto rickshaws have begun. “There is not much difference in the cost between an auto rickshaw and a Nano. We continue to receive complaints about auto drivers. Moreover, their number in the city is insufficient compared to the population,’’ Ashoka said.

Meanwhile, Tata Motors has hiked the price of the toddler. The Nano ride would now be costlier by nearly Rs 6,000. Tata Motors blames the growing input costs. We recently had Ford, Toyota and GM increasing prices for the very same reason. So, it certainly doesn’t appear like Tata Motors is doing something very wrong. Also, just as promised, the first one lakh customers of the Nano get to enjoy the low price. The entry-level price of the world’s cheapest car is Rs 1.23 Lakh while a deluxe variant costs Rs 1.72 Lakh.

Around 45,000 Nanos have already been delivered since July 2009. The remainder of the 1 lakh customers who were selected through a lottery last year from 2.06 lakh bookings will probably have their cars delivered by end of this year.

Tata Motors has begun intimating the price rise to customers who did not make the cut, but held on to bookings. There has been a sudden sharp increase in input prices. However, the Tata Nano will be seeing just a 3-4 per cent rise in price depending on the model. The car maker calls the rise ‘fairly nominal’ as it joins a handful of car makers like Maruti Suzuki and Hyundai Motor India that have raised prices by nearly four times in a year to balance growing input costs.

Tata Motors has also announced that it would reward customers for bearing with the company through a delay in delivery due to capacity constraints. It will offer customers a choice of one-year free annual maintenance contract, or free accessories worth Rs 4,000, or an extended warranty.

Tata Motors has been gradually increasing the Nano’s production at its Sanand plant. The plant can produce 2.5 Lakh units a year. Once production at that reaches its peak, Tata Motors may export the Nano to overseas markets like Asia and Africa. It has already started work on the car’s marketing in the U.S.