UPDATE 1-Still can't resume work at India's Nano plant- Tata

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MUMBAI, Aug 30 (Reuters) - Conditions are still not favourable to resume work at a plant in eastern India which will make the Nano, billed as the world's cheapest car, Tata Motors (TAMO.BO: Quote, Profile, Research) said in a statement on Saturday.

Tata Motors which is building the plant to launch the 100,000-rupees ($2272) car, has faced violent protests and political opposition over the acquisition of farmland in Singur, an hour's drive from the city of Kolkata, the capital of West Bengal.

"There has been no improvement in the ground situation so far, hence the conditions are still not conducive for resuming work today," a Tata spokesman said in an e-mailed statement.

"We continue to assess the situation closely."

Last week, Tata Motors Chairman Ratan Tata said he was prepared to move the plant from Singur if violence continued, despite having invested $350 million in the project.

Trouble began after the government took over 1,000 acres of farmland for the factory. The government offered compensation but some farmers rejected it, demanding that at least 400 acres of land be given back to them.

The protests reflect a larger standoff between industry in India and farmers unwilling to part with land in a country where two-thirds of the billion-plus population depend on agriculture.

Mamata Banerjee, leader of the opposition Trinamool Congress, which is spearheading the protests, has threatened to organise state-wide demonstrations.