Jitters from a dispute over the Tata Group’s plans to build the world’s cheapest car in West Bengal state are spreading to other Indian companies, with Infosys Technologies warning on Tuesday it might also be forced to rethink its plans for the state.

Infosys said the dispute, in which protesters have blockaded the site of the partially built factory for the Tata Nano car, was making it apprehensive about its own proposal to set up a Rs5bn ($127m) software development centre in the state. “Singur has created fear in the minds of India Inc and like all other companies we are watching the developments very closely,” said Infosys, India’s second-largest outsourcer. The dispute over Singur has worried corporate India because the Tata group is seen as the most acceptable face of capitalism in the country due to its extensive corporate social responsibility programmes.