The Indian state of West Bengal, where Tata Motors planned to build the ultra-cheap Nano car, has lost almost all hope of retaining the project, the Indian Express newspaper said on Friday, citing the state's chief minister.

Tata Motors, India's top vehicle maker, had suspended work in Singur in the eastern state earlier this month after violent protests by farmers unwilling to give up their land for the factory. It said it was looking at other locations.

Despite talks with the main opposition party backing the protesters, Chief Minister Buddhadeb Bhattacharjee has told the cabinet "hope for Singur is almost lost", the paper said.