Tata says he’ll shift Nano plant if violence continues

Warns Bengal will lose investor trust

KOLKATA: Ratan Tata on Friday warned that Tata Motors would be forced to move the Nano plant out of Singur and West Bengal if violent protests continued to disrupt the scheduled launch of the world’s cheapest car in October.

Rejecting Trinamool Congress chief Mamata Banerjee’s demand to return 400 acres of contentious land acquired for ancillary units, Tata said his group would move out if the violence continued and West Bengal would emerge as a “troubled spot” for all potential investors. He said Tata would not continue with the project if it’s “unwanted” in the state.

“Our decision will not be a hypocritical move. If anybody is under the impression that we have invested Rs1,500 crore already and will not move out then they are wrong. Because, we would go whatever the cost,” Tata said.

Reacting cautiously to Tata’s remarks, chief minister Buddhadeb Bhattacharjee said: “I think that the people of West Bengal want this project to come up at Singur and I am optimistic.” He appealed to the protesters to maintain peace on Sunday. “Nobody should indulge in violence,” he said.

Mamata, however, stuck to her guns saying: “We don’t want anybody to move out of West Bengal, but at the same time, we will not bow to any kind of pressure. There should not be any kind of blackmailing.” Her party plans to lay siege to the small car plant on Sunday.

Speaking to reporters on the sidelines of the Tata Tea’s AGM, the group chairman said: “For various political reasons, if things cannot be altered, we will need to move out. I don’t have an ulterior motive. To move out will be a great cost to Tata Motors, shareholders of Tata Motors and to the people of West Bengal. We fear that West Bengal will become one of the troubled spots in India in case matters go out of control.”

The Singur project was announced two years ago and there have been violent protests ever since the acquired land was fenced in December 2006. Tension has increased in the last few days with the Trinamool Congress demanding the return of 400 acres of fertile land acquired to set up ancillary units. There have been instances of Tata employees either being heckled or threatened with dire consequences if they didn’t leave Singur.

“Our contractors, workers and employees are under tremendous tension. Employees are beaten up, children cannot go to school, material gets stolen, cars cannot go out of the plan — this is not conducive at all. One can’t build an operative plant in this situation,” Tata said.

Asserting that Tata didn’t “want to come to an area where we are unwanted”, he said: “Even though we have a feeling that we are not wanted here, we have faith in the people of the state.”

On the issue of 400 acres which has been earmarked for the ancillary units, Tata said the Nano was a unique product. “It is necessary to incorporate the ancillary units in the same location to keep the logistics cost low.”

A total of 55 vendors were locating their units near the mother plant, which is coming up on 600 acres. These ancillary units will occupy 400 acres — the root of the problem.

Orissa opens doors
Hours after Tata threatened to pull the Nano car project out of Singur, both ruling and opposition parties in Orissa said the state's doors were open for the Tata's to shift their much awaited Rs1 lakh car project.

“If they come forward to set up car project here, Orissa government will provide all kinds of support,” state Industry ministry and senior BJP leader B B Harichandan said.