MUMBAI: Tata Motors has suspended the construction and commissioning work at the Nano Plant in Singur in view of continued confrontation and agitation at the site.
According to a release issued by the company today, the decision was taken in order to ensure the safety of its employees and contract labour who have continued to be violently obstructed from reporting to work.
"The company has assessed the prevailing situation in Singur after five days of cancellation of work, and believes that there is no change in the volatile situation around the plant. The project's auto ancillary partners, who had commenced work at their respective plants in Singur, were also constrained to suspend work in line with Tata Motors’ decision.
"In view of the current situation, the company is evaluating alternate options for manufacturing the Nano car at other company facilities, and a detailed plan to relocate the plant and machinery to an alternate site is under preparation. To minimize the impact this may have on the recently recruited and trained people from West Bengal, the company is exploring the possibility of absorbing them at its other plant locations," the release added.
The release added that some international consultants working on the plant have returned home, and the construction work in the plant has been stalled since August 28, 2008.
Commenting on the situation, a Tata Motors spokesperson said: "The situation around the Nano plant continues to be hostile and intimidating. There is no way this plant could operate efficiently unless the environment became congenial and supportive of the project. We came to West Bengal hoping we could add value, prosperity and create job opportunities in the communities in the state."
Tata Motors has invested Rs 1,500 crore so far in the Singur plant, and relocating would mean huge land costs. The new location might not have any tax benefits.
Most important, the pricing of Nano might change drastically....
Tata Nano: Timeline
18 May, 2006: Announces plant to be set up in Singur
Aug 2006: 1st protests – local agitation started by opposition
Dec 2006: Mamata Banerjee goes on hunger strike
21 January, 2007: Initial construction of Singur factory begins
August 2007: Tata chairman Ratan Tata says ‘we are committed’
January 2008: Tata chairman Ratan Tata unveiled the Nano at the Auto Expo
August 22, 2008: Ratan Tata says won’t hesitate to move out of Singur
August 24, 2008: Trinamool launches protests outside Nano plant in Singur
August 31, 2008: Mamata Banerjee offers proposal for settlement
September 2, 2008: Tata Motors suspends work at Nano plant
September 2, 2008: Tata Motors plans to relocate Nano plant
Nirupam Sen, Industry Minister, West Bengal, said: "Let us all urge the Tatas to stay back. I urge the opposition to settle the dispute among ourselves and not let the Tatas go. It is very unfortunate, and it is a very sad day. I could never imagine the opposition would be so irresponsible......."
Mamata Banerjee, who is spearheading the agitation, said she is ready for talks with or without intermediaries but added the 400 acre land under dispute is non-negotiable.
Corporate Affairs Minister P C Gupta said Tatas should solve the issue through discussions. "Tatas should initiate talks with the authorities and the farmers..." he added.
Hormzad Sorabjee, Consulting Editor, UTVi, said: "They have got faciltiies in Pant Nagar. You need tools and fixitures. Small volumes can be achieved but for full scale production, you need to adapt. Not an ideal situation but theoritically it is possible.... I doubt if they could do more than 30,000-40,000."
Hindol Sengupta of UTVi said: "Its ironical that this is happening today when the CPI(M) meeting happened. A senior member said that it is important to stop protests and start production. We are waiting for a statement from Mamata Banerjee but if they pull out, it is a big blow to the government...."
He added that if Tatas do pull out of Singur, the 1,000 acre land would become a no-man's land... "This doesn't end here. What will happen to the 1000 acre land? Under the land acquisition act, the government cannot give it back. People who are protesting can't get their land as it belongs to Tatas. It would be a cruel joke on the farmer...."
Amit Mitra, secretary general, FICCI said, the perception of Nano coming out on time should not be affected. "The Nano project is being looked at across the world. After a while, people will forget the Singur issue but the car will change it... It will ensure that when commtiment is made, India delivers. For that, Nano has to be on the table... In a situation like this, the Governor of West Bengal should take an independent stand and seek additional compensation for the farmers. Where government has not acquired land, the private sector has given more to farmers in terms of money and equity and also jobs to them. It is terrible that it has happened to the Tatas who have given the highest reputation of corporate social responsibility."
Chandrajeet Banerjee, director general, CII, said the sitution could have been avoided.. "... a pull out will lead to a setback for many years. A solution is necessary to avoid a pull out...."
He added that there is a need for robust mechanism on land acquisitions. "This situation cannot recur, and should not occur in other states."
Dilip Shenoy of Indian Automobile Manufacturers Associaiton, said: "I think this a decision that is evaluated on the situation on the ground. I think the agitation should be suspended and parallely discussion should happen...."
Surendra Kapoor, chairman, Sona Koya Steering, said: "I think Mr Tata has a promise to keep. He will keep that. If it can't be done in Singur, he will take it to some other plant. I am sorry for the people of Singur where they could have been known in the world map of automotive industry. Look at Tatas, and what they have done in Pune or what Maruti has done in Gurgoan. Why should someone oppose industrialisation? Business is all about doing things skillfully. We are all committed to Tata. We will support them. I don't think vendors will back out...."
Sunil Kant, managing director, Hero Corporate Services said political parties should understand the situation. "I certainly feel the situation should have been handled differently...."
He added that there is a need to find an easy way to transfer land, and it is important that the compensation that is given is suitable and also provide facilitation.
Will other states be more pragmatic? "One thing is clear - this problem has not happened just in West Bengal. Many states are inviting the Tatas as they recognise the importance of industrialisation, and plants like these create employment opportunities. I believe as Indians we need to sit back and think about what kind of development model we need. We need to create a smooth facilitation and it should work in everybody's favour..."
Venugopal Dhoot, chairman, Videocon Industries, said the development is pure bad luck for the Tatas. "I am sure Tatas will find a solution. They have acquired Corus for Rs 50,000 crore. The 400 acre in Singur is not West Bengal.. our plants are doing well in West Bengal, power projects are going very well in West Bengal. There is problem only in Singur... It is indeed a sad day for the Tatas and India also...."
Dhoot said land acquisition can be a smooth process by following the E-E-M model i.e employment, equity and money..."offer employment, equity and money... why will the farmers not accept the proposal?"
Updated at 1830 hrs: As the fortnight that Ratan Tata gave the West Bengal government to solve the Singur impasse nears its end, there is finally hope that talks will happen... and happen soon to rescue the Rs 1,500 crore project
Biman Bose, secretary, CPI (M), who in West Bengal is as almost as powerful as the Chief Minister, said the party is ready to talk to protesting Trinamool Congress leader Mamata Bannerjee and her agitating farmers - suggesting for the first time a special rehabilitation package.
Bose said: "...we are ready to offer a special rehabilitation package, a sustainable development in perpetuity..."
The words used for this package "in perpetuity" is critical because it provides for farmers over generations...
The next step is finding a intermediary for the talks whose idea has been initiated by Governor Gopal Krishna Gandhi but who does not have the contitutional authourity to speak. The names mentioned are Amartya Sen and A P J Abdul Kalam but no one has been finalised but the idea of an intermediary, another big move forward, has been approved.
The big question then is WHEN? Sources say patience is running out in the Tata camp with their plant shut for five days now and loss of Rs 1 crore each day.
Will the Nano plant revv up again or will it be no-no as Mamata Bannerjee is fond of saying for the people's car? (Hindol Sengupta, UTVi, Kolkata) |
Published on 
Tags:
