‘We’d move, whatever the cost, to protect our people’

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: Excerpts from Ratan Tata’s press conference on the sidelines of the Tata Tea annual general meeting in Kolkata on Friday:

Mamata Banerjee has been demanding the return of 400 acres to farmers. What Tata group’s take on it?

When Tata Group came to West Bengal there was a very little development and investment in the state. Despite great apprehensions about we making the investment, Tata Motors decided to locate one of their prime and unique factories in West Bengal. This part of the country, inspite of being a centre of heavy engineering in the past, has always been ignored industrially. We thus decided to locate the small car factory in Kolkata and hoped for setting up to showcase the new industrialisation of West Bengal. We leased the property offered to us that had already been acquired. We were looking forward to a unique product at a very low cost and wanted it to be a consolidated car company with its ancillary suppliers incorporated in the same location since logistic and transport cost are a major part of the component cost of any plant. We are trying to produce a car never been tried anywhere in world and the kind of price. It will be a tribute to the young engineers if we achieve that. What has concerned us is the violence. The destructions have let us to be concerned about the safety of our employees, equipment and the viability of the process. We do not want to come to an area where we perceive we are unwanted. We have not come here to exploit any segment and are deeply concerned about the people of West Bengal. If, in fact, anybody has a history of dealing with serving the people of around their plants, I think we have displayed that kind of sensitivity. It is for the people of West Bengal to decide whether we are going to be an unwanted resident or a good corporate citizen of West Bengal. If it is the latter we will be very happy to be part of this development. If, on the other hand, there were a view that for various political reasons we should not be here or what we are trying to do should be altered, which cannot be, we would necessarily face an issue, very reluctantly, where we need to move. If anybody is under the impression that because we have made this large investment of about Rs 1500 crore, we will not move, then they are wrong. It is not a hypocritical investment. We would move whatever the cost to protect our people. I can’t bring our managers and their families to West Bengal if they’re going to be beaten, if there is violence constantly, if their children are scared to go to school, and surely that is not what West Bengal is. Being a highly intelligent and a literate state I think it has tremendous potential. The people of West Bengal, be it in agriculture or industry, I think have a rightful place in the prosperity of India. We hope to help bring prosperity to the state. However, if the state, for any reason, any segment of the state feels we are exploiting them, we will exit.

What exactly is your anxiety—the violence or worse?

My concern is no specific issue other than the fact that if there’s a sense of tension, violence and disruption, obviously it is not a conducive environment. I have to applaud all the people who have been working at the site under tremendous tension. Our compound walls have been broken, people have been coming in, and material is being stolen. We can’t open and operate a plant under police protection.

Do you regret coming to Bengal?

No, I don’t. I am an optimist. I have, unknown to most of you, lived in Jamshedpur for 6 years. I know West Bengal well; have spent a lot of time here and thus have had a very soft corner for the state, which led me to take the decision. The last thing I want is a feeling that Tatas are unwanted in West Bengal. Under those circumstances we could just revert back. Tata’s did not invest in any major way in West Bengal for many years. This is our token. Yes, we donated a hospital, which will be operational in March or April 2009. That has nothing to do with the industrial decision we made. What we have looked at is that all our company is looking at West Bengal. Be it in power, metalics, and coking coal or as a place for industrialisation. At the same time we are extremely sensitive to the rural community and I think Tata’s, more then anyone else, are sensitive to the need for rural community to be uplifted. We have always been ahead of rest of India in water conservation projects and improving agriculture. We’ll do just the same here. I don’t think that our involvement in West Bengal starts and stops with our investment in an industrial location. In this particular case, all I can say is we leased the land that was offered to us. We believe we acquired legally.

A few say Singur deal lacks transparency. What is your take? Also, do you think that by not making the deal public, the state government is adding fuel to further tension?

I don’t believe there is a lack of transparency and don’t wish to comment on what the government is doing or not doing. I believe, for example, how we build cars is our business. How the government operates, is theirs’. I believe this whole transaction has, in the best of my knowledge, been very transparent.

Are you confident of rolling out Nano in October from Singur?

On our part, we are in a position to roll out Nano in October or close to it. However, it seems, many people desire not to see that happen. It’s very easy for people to block that from happening. We desire to see this happen and it can.

You said if violence continues, you will move. Have you set some kind of a deadline for the same?

Please understand, I am making a very genuine statement. I don’t have a motive or a plan that I am working upon. I have made a major investment here. To move would be a great loss to the company and the Tata Motors shareholders. I think also to West Bengal because I don’t know, how many Rs 1500 crore investments would be coming to the state. I’m afraid that if this untoward issue continues West Bengal doesn’t get characterised as a trouble spot in India. Where there is an urge to leave it alone and not to take the risk of investment. There is no time frame but there is a concern for our people. Of being where we are not wanted. A definite concern over people being suspicious of our motive.

Is there any plan B?

No. None at this time.

Will you accept any alternative plan just to save the project?

I have already explained that the vendors have already let me address that. They have made as much of a leap of faith in West Bengal as we have. Without the vendors having come there and been willing to locate themselves adjacent to us, be part of our plan, there would have been no Nano plant in Kolkata as the components would have had to come from other parts of India. The component manufacturers have therefore made as much a leap of faith. They in fact will employ large number of people and, in fact, more investments will follow in the terms of Tier II and Tier III suppliers.

If you have to move this project outside West Bengal would it affect the future investments by the Tata group in the state?

Of course it would.

Return of the land. Is it possible to negotiate?

It’s not for us to negotiate. The ancillary people have committed themselves to come. In many cases construction of plants is under way. I cannot emphasise on the hardships we have undertaken. We have had, apart from the disruptions, floods, silting and no cultivation in last two years because the site has been like a lake.

Are you thinking of talking to Mamata Banerjee?