Oct 5, 2008

Tata pullout @ Singur and What's nxt ?

Months of uncertainty over the fate of the jinxed Nano project was broken finally on Friday, with Ratan Tata announcing a complete pullout from Singur, a mere 48 hours before the festival season starts off in West Bengal.

Mr Tata declared that he was pulling out from Singur, not because of the West Bengal government’s attitude, but because of ‘Mamata Banerjee’ and her agitational ways. The company has displayed immense patience and had sincerely hoped that the situation would improve.

Ratan Tata reiterated that the project was to be a showcase plant which would have considerably enhanced the visibility of the State, created jobs for the younger citizens of the State and through the company’s community programs, would have enhanced the quality of life of the urban and rural population.

Well, now considering that Tata has decided firmly to quit Singur, we look at the many options Ratan Tata is being offered for Nano plant relocation and also the aftermath in West Bengal.

The Aftermath :
  • The decision by Tata Motors to move the Nano project out of West Bengal after violent protests may affect the broader investment climate in the country, detering foreign investors and denting economic growth.
  • Though the immediate impact would be limited to West Bengal as the Tatas move to a more industry-friendly state, it would have wider repercussions as more states may adopt a harder anti-industry tone for political gains.

Who will BAG the Project ?
...and the nominees are:
  • Gujarat: The state has offered three strategic locations to Tata Motors, for setting up the Nano plant in Gujarat - Mundra in Kutch district, Charodi in Sanand taluka of Ahmedabad district and one location in the Surat district.
  • Karnataka: Karnataka Chief Minister B S Yeddyrappa stepped up its efforts to lure Tata Motors to shift its small car project to Karnataka,and invited Tata CMD Ratan Tata for discussion.
  • Maharashtra: As Ratan Tata made Nano's exit from West Bengal official, Maharashtra Chief Minister Vilasrao Deshmukh renewed his invitation to set up the car plant in the state. He reiterated that his government will give all necessary facilities to start the Nano plant in the state.
  • Orissa: Chief Minister Naveen Patnaik asked him to utilise the company's unused land at Gopalpur in Ganjam district and avail all facilities provided to investors under the Industrial Policy Resolution-2007 and where Tata already have in their possession about 3700 acres land since 1998.
  • Uttarakhand: The government is keen to provide every possible assistance to the industry for relocation. Chief Minister B C Khanduri also highlighted the advantages such as good rail, air and road connectivity, availability of continuous electricity and tax incentives on account of special industrial package.
Considering the tragic pullout of Nano project from West Bengal, Ratan Tata, although being offered varied lucrative locations for Nano, will make decision only after being assured of 'no politics' in business.


  1. will this step those who are dependent on this project for their bread and butter????

    need a reconsideration from Mr TATA to think for them

    more or less politicians like her(need not to mention name) are good for nothing, so why to suppress the livelihood of those fellow workers

    what do you suggest???

  2. As i already mention in my post that Tata has tried its level best to stay in West Bengal, despite the protests.

    Tata showed patience to make the government rethink over their political agenda but they failed to evaluate this project's significance.

    Nevertheless, some others may get benefited BUT the best part is that somewhere someone (an Indian) will be employed.

  3. May be,,,,,,,,,,,,,,,,

    but what happen to those whose land had been acquired in lieu of job satisfaction..........

    well i do believe that it is difficult for a big industgrialist like Mr Tata to wait for such a long time after investing such a large amount in the project....

    well whatever happens, happens for good as every thing has its positive and negative aspects....
    this deal might be a blessing in disguise for someone else

    what do u think about politicians and political parties interference in such issues

    what will Mr tata do if the state government of the state where he is planning to move shows a red flag to him

    do you think supreme court interference in such issues is foremost requirement and is the only solution to this sort of problems

    give your views
    waiting for your reply