CALCUTTA, (India) - THE governor of an Indian state where violent protests have erupted over a Tata Motors factory that is building the world's cheapest car expressed confidence on Saturday that a deal will be reached with angry farmers in the next few days.

Talks continued on Saturday between officials and protesters who accuse Tata Motors of unfairly acquiring land in eastern India for the factory.

The Singur area of West Bengal state has been rocked by weeks of increasingly violent protests by farmers and local political leaders who want Tata to hand back some of the land, claiming farmers were not adequately compensated.

The company was forced to suspend production at the US$350 million (S$502.5 million) plant in Singur this week.

'We had an opportunity to go into greater details of the proposals for land-based rehabilitation schemes in and around the Singur project,' West Bengal Govenor Gopal Krishna Gandhi told reporters after the end of Saturday's negotiations.

'I am confident that our discussion, which was marked by cordiality and frankness, will lead to a satisfactory conclusion in our next sessions tomorrow and the day after tomorrow,' he said.

No Tata Motors representatives attended Saturday's meeting.

The company has pledged to launch the US$2,500 car by year's end, but the demonstrations threaten to delay the launch date. Tata is preparing alternative production plans, including building the car at factories in other parts of the country.

Suresh Rangarajan, a Tata spokesman, said on Friday that the land dispute was a matter for local officials to resolve.

'It's a political matter,' he said. 'The government has acquired the land and the land was leased to me. The Tatas believe in the process of acquisition the government followed.'

He declined to comment on whether the Nano would be launched on time, saying only that the company was making 'every effort' to stick by its schedule. -- AP