Tata threatens to pull out of Singur project

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Kolkata, Mumbai, Aug 22: The worst fears surrounding the much-hyped Tata Nano project at Singur in West Bengal appear to be coming true. In a move that could have wide-ranging ramifications for the industrial resurgence of the state, Tata group chairman Ratan Tata on Friday threatened to pull Tata Motors’ small-car project out of West Bengal in the face of what he described as “constant violence” and “disruption”, which he said pose a threat to workers and equipment at the project site.

“If any part of the state feels we are exploiting them—first of all, it is totally untrue—we will exit,” Tata said. Tata Motors, which has already spent a sizeable Rs 1,500 crore to set up the plant for the Rs 1-lakh Nano, has no Plan B, said Tata, who was in Kolkata mainly for the Tata Tea annual general meeting (AGM) on Friday.

“If anybody is under the impression that because we have made this large investment of Rs 1,500 crore… we would not move, we say, no. We would move at whatever the cost to protect our people. I can’t bring our managers and their families to West Bengal if they are going to be beaten and there is going to be violence constantly,” Tata told reporters after the two-hour AGM.

Without commenting directly on Tata’s threat, West Bengal chief minister Buddhadeb Bhattacharjee later in the day made clear the significance his administration attaches to the Tata Motors project in Singur by saying, “The state’s people want this important project.” Bhattacharjee pointed out that he and his commerce & industries minister Nirupam Sen had met with leaders of the opposition on Wednesday to find a solution to the land issue.

Tata’s statement has raised doubts over the scheduled October rollout of the Nano, which captured the world’s attention with its pricetag. “Volumes will be an issue for Tata Motors if the company plans to move out of Singur,” sources said. The pullout will also involve relocation of the 55 vendors supposed to anchor in Singur, and could lead to an increase in transportation costs and overall price of the car. An investment of around Rs 2,000-Rs 3,000 crore was to be made by the vendors. Of this, a few have already started construction.