Visibly upset over the mounting tension and the growing threat to property at Tata Motors’ Nano small car project at Singur in West Bengal in the wake of the ongoing agitation against the unit by Trinamool Congress, under its leader Ms. Mamata Banerjee, and its allies, the Tata Group Chairman, Mr. Ratan Tata, recently announced his intention of moving out of Singur. He made it very clear then that the project cost of Rs. 1,500 crores won’t deter him from proceeding with his plan if the agitation persisted. The crux of the problem is Ms. Banerjee’s demand that the 400 acres out of 997 acres of land taken possession of for the car project, allegedly acquired by the management without the consent of the peasant-owners and by using force, be returned to them. This has been countered both by Tata Motors and the State Government stating that the land deal done was most transparent and that adequate compensation had been paid to the owners. Further the issue is being raked up by certain vested interests to gain political mileage.
Firm on continuing the agitation till the return of the land to those from whom it has been snatched away, Ms. Banerjee launched an indefinite stir at the project site on August 24. This has its serious consequences. With the blockade of the expressway passing through the area, truck operations along the route have come to a standstill, leading to widespread shortage of foodstuff and other essentials there. At the same time, the agitators continue indulging in violence. In the circumstances, the Tata Management did what could have been avoided had the agitators restrained themselves. Work at the project site was suspended on August 29 when the protestors prevented the employees and other contract workers from leaving the factory the previous day.
The situation is definitely getting out of control at the project site. The earlier hopes expressed by industry associations and the State Government that the Singur project will sail through somehow with the expected fizzling out of the agitation or a negotiated settlement worked out by the parties to the dispute are fading. Instead serious concern has been expressed by industry leaders all over the country, irrespective of their areas of specialisation, over the Singur developments. They have joined hands to back Tata Motors in its endeavour to roll out the first vehicle from the Singur plant as scheduled in October, and have appealed to the parties concerned for working out an immediate solution to the Singur crisis.
Industry appeal
The Society of Indian Automobile Manufacturers (SIAM) would like to see an early resolution in Singur. It is disappointed with the developments there. The investments being made would result in a product that is a global first, and hence global attention is on the developments there.
SIAM believes that this was a landmark decision by the company that could and will change the lives of people in the area and also revive industrialization in West Bengal and the eastern region.
The progress of the investment is such that the factories have been built, and therefore it is important to find a solution that does not adversely affect the investments made and, most importantly, the overall competitiveness and viability of the project.
SIAM would like to appeal to all concerned that a process must be initiated to arrive at a solution that would take forward the project so that production targets are not missed. Such a solution would ensure that the investments of over Rs. 70,000 crores committed by the automotive industry to be made in the country over the next few years would happen.
Mr. R. Seshasayee, Past President of SIAM, and Managing Director, Ashok Leyland, observes: “The Nano is certainly a flagship project and withdrawal of this project would adversely affect not only the image of the State but also the country. It is imperative that all political parties come together now and arrive at a solution. It is critical to distance this discussion from the factory side so that normalcy can be restored immediately.”
According to Mr. Sunil Kant Munjal, Chairman, Hero Corporate Service, it is in the interest of both West Bengal and India that the Tata Nano project is not moved at this stage. Withdrawal of the project will severely affect West Bengal’s image, and it certainly won’t do India’s image any good. Political parties must rise above partisan lines, ensure continuity and growth in economic activity and also help in creating a peaceful environment.
Of course, the investing entity has a responsibility to take care of the interests of all stakeholders, including people who are displaced or re-employed, etc. “Indeed, given their level of social commitment, I have no doubt that the Tatas are fully aware of their responsibilities in Singur as they have demonstrated in many of their companies. All possible efforts must be made to ensure that the project is implemented peacefully and on schedule. This would be in the interest of the community and for nation-building”.
Mr. Brijmohan Lall, Chairman, Hero Honda Motors Ltd., joins the industry leaders, and says: “The leadership demonstrated by Mr. Ratan Tata on the Singur issue is commendable. His determination to go ahead with the Nano project this far reflects his deep commitment to the State of West Bengal and, more importantly, demonstrates his resolve to keep a promise. It would be really unfortunate if circumstances continue in this manner and the Tatas are forced to pull out. All political parties need to come together to ensure that this project happens.”
Mr. Abhay Firodia, Chairman and Managing Director, Force Motors, said: “The automobile industry is the engine of growth for any economy. All over the world, countries have developed on the back of automobile industry. Nano is a huge opportunity for West Bengal due to its deep forward and backward linkages. People should understand the importance of the project and resolve the dispute at the earliest.”
Reacting to the situation Mr. Venu Srinivasan, Chairman and Managing Director, TVS Motor Company, commented: “Considering the national importance of this project, it would be unfortunate if political considerations come in the way of India’s progress”.
