Tata threatens to draw out Nano project from West Bengal
Tata Motors Chairman Ratan Tata on Friday threatened to exit West Bengal if there was no let up in violence at Singur, where the company is building a factory to make the world's cheapest car Nano.
"We are deeply concerned at the violence and disruption and at the safety of our employees, equipment and investments at the project site at Singur," Tata told reporters on the sidelines of the Tata Tea annual general meeting.
He said: “It is for the people of West Bengal and Kolkata to decide whether we are unwanted or accept us as a good corporate citizen.” "If it is the latter, then it is good." He said that if it was the other, then it would be impossible to alter the plan "following which we would have to make a move despite whatever investments had been already made in the project." A visibly disturbed Tata said that Rs 1500 crore of investments had been already made in the project. "There is a sense of tension, violence and disruption (at Singur). Obviously it is not a conducive atmosphere. The compound wall is broken down, materials stolen." "Whatever be the cost, we will move out if the situation demands so," he said.
Tata said that there was a general perception that Tatas were exploiting the state. "We are extremely sensitive to the needs of the rural community. We have not come to exploit anyone. We have got the land on lease and not bought it." The state had been long ignored by industrial houses, including the Tatas. "Despite much flak which we have drawn for locating the dream project at Singur, we have decided to locate the project here.” "We are also gifting a hospital to the state which would be commissioned in March 2009," he said. Saying that he had no regret for coming to West Bengal, he said "I am an optimist." If the project was moved out of Singur, then it would definitely affect the future flow of investments by the Tatas in the state, he said. Explaining the situation at Singur, Tata said: "It is not possible to work under police protection." On the issue of 400 acres which had been earmarked for the ancillary units, Tata said that the small car Nano was a unique product. "It is necessary to incorporate the ancillary units in the same location to keep the logistics cost low." The main opposition Trinamool Congress in the state is insisting that the company set up operations on 600 acres and return 400 acres of land earmarked for ancillary units to farmers from whom the property was acquired forcibly. Referring to Trinamool Congress chief Mamata Banerjee's willingness to talk to the Tatas if a proposal was given to her, Tata said that Tata Motors Managing Director Ravi Kant had already written a letter to her. "We would surely want to meet her and explain our position," he said. Tata said that there was no lack of transparency in the deal with the West Bengal government. Asked whether the company would be able to roll out the Nano within the stipulated deadline of October-December quarter of 2008, Tata said "it is our desire to do so." To a query, he said that there was no timeframe for pulling out of Singur. "Even though we have a feeling that we are not wanted here, we have faith in the people of the state." With the state government not relenting to the opposition party's demands, a deadlock has been created leading to tension and violence in the project area. Tata Motors, which is scheduled to launch the Nano car later this year, has faced violent protests and political opposition against farmlands acquired for the Nano project in West Bengal, which threaten to delay the launch. On Thursday night, a hush-hush meeting between Ratan Tata, commerce and industries minister Nirupam Sen and a clutch of Bengal-based industrialists who have land in Singur fuelled speculation that the government and the Tatas were looking for alternative land options in the neighbourhood.
"We are deeply concerned at the violence and disruption and at the safety of our employees, equipment and investments at the project site at Singur," Tata told reporters on the sidelines of the Tata Tea annual general meeting.
He said: “It is for the people of West Bengal and Kolkata to decide whether we are unwanted or accept us as a good corporate citizen.” "If it is the latter, then it is good." He said that if it was the other, then it would be impossible to alter the plan "following which we would have to make a move despite whatever investments had been already made in the project." A visibly disturbed Tata said that Rs 1500 crore of investments had been already made in the project. "There is a sense of tension, violence and disruption (at Singur). Obviously it is not a conducive atmosphere. The compound wall is broken down, materials stolen." "Whatever be the cost, we will move out if the situation demands so," he said.
Tata said that there was a general perception that Tatas were exploiting the state. "We are extremely sensitive to the needs of the rural community. We have not come to exploit anyone. We have got the land on lease and not bought it." The state had been long ignored by industrial houses, including the Tatas. "Despite much flak which we have drawn for locating the dream project at Singur, we have decided to locate the project here.” "We are also gifting a hospital to the state which would be commissioned in March 2009," he said. Saying that he had no regret for coming to West Bengal, he said "I am an optimist." If the project was moved out of Singur, then it would definitely affect the future flow of investments by the Tatas in the state, he said. Explaining the situation at Singur, Tata said: "It is not possible to work under police protection." On the issue of 400 acres which had been earmarked for the ancillary units, Tata said that the small car Nano was a unique product. "It is necessary to incorporate the ancillary units in the same location to keep the logistics cost low." The main opposition Trinamool Congress in the state is insisting that the company set up operations on 600 acres and return 400 acres of land earmarked for ancillary units to farmers from whom the property was acquired forcibly. Referring to Trinamool Congress chief Mamata Banerjee's willingness to talk to the Tatas if a proposal was given to her, Tata said that Tata Motors Managing Director Ravi Kant had already written a letter to her. "We would surely want to meet her and explain our position," he said. Tata said that there was no lack of transparency in the deal with the West Bengal government. Asked whether the company would be able to roll out the Nano within the stipulated deadline of October-December quarter of 2008, Tata said "it is our desire to do so." To a query, he said that there was no timeframe for pulling out of Singur. "Even though we have a feeling that we are not wanted here, we have faith in the people of the state." With the state government not relenting to the opposition party's demands, a deadlock has been created leading to tension and violence in the project area. Tata Motors, which is scheduled to launch the Nano car later this year, has faced violent protests and political opposition against farmlands acquired for the Nano project in West Bengal, which threaten to delay the launch. On Thursday night, a hush-hush meeting between Ratan Tata, commerce and industries minister Nirupam Sen and a clutch of Bengal-based industrialists who have land in Singur fuelled speculation that the government and the Tatas were looking for alternative land options in the neighbourhood.
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