It will be powered by 350cc one cylinder diesel engine. This is essentially half the cylinder block of the engine powering the Tata Ace, which itself uses a sliced Indica cylinder block.
The Nano pickup uses the same engineering techniques like single windshield wiper, 3 wheel lugs, scooped out dashboard and short wheelbase. The engine is also mounted at the rear axle, doing away with a propeller shaft.
Image Source - Overdrive