The accident took place around noon near Uphaar cinema hall in Green Park, the official said.
"There were sparks from the rear of the car as soon as the ignition was switched on. Within a few minutes, the fire engulfed it," the official said.
"A fire tender was rushed to the site and the fire was doused within a few minutes," he added.
Tata Motors' low-cost car has earlier too been in the news for similar accidental fires on separate occasions. At least six Nano cars have been gutted so in various parts of the country, according to reports.
Back then, Tata had assured the customers that Nano was a "safe car" after an internal team, including a forensic expert, investigated the fire incidents.
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