Tata Motors sets 2 week deadline for Singur solution

Tuesday, August 26, 2008, 5:26

The Economic Times is reporting that Tata Motors has set a two-week deadline for a solution to the Singur problem.

If this is true, things are going from bad to worse for everyone concerned.

As we know, there is a siege of the Tata Nano factory going on at Singur, led by Mamta Banerjee of Trinamool Congress and local agitators. Amar Singh and Medha Patkar too had joined her when she started the agitation.

Mamta banerjee has rejected any discussion with the West Bengal Chief Minister Buddhadeb Chatterjee, asking for a return of the 400 controversial acrees to the farmers first before any discussion can be started. This, obviously, is unacceptable to Tata Motors or the WB government.

However, continuing conflict would mean that Tata Motors would not be able to operate the Nano plant in a peaceful environment. Like Ratan Tata himself said, he would not like to operate the plant under police protection. (Ratan Tata affirms Nano from Singur – our story from 2006)

The ET says that it might cost Tata Motors rs 100-200 crores to shift the Nano plant to another location.

It seems that the initial lot of 500o Tata Nano cars are ready at the Pantnagar and Pune plants, so there wouyld not be any delay in the official release of the car. However, once bookings start, deliveries would get delayed by a month or two easily.

If the deadline is real, then everyone concerned would be under pressure. Not negotiating would affect Mamta Banerjee’s fortunes in the rest of Bengal. The farmers who have already been paid for their land, and those who were counting on the Tata Nano plant to build their fortunes own would be left in the lurch. And West Bengal’s reputation as a place unfriendly to business woudl be cemented. At least this time, the Communists are not directly responsible, but one can safely say their strong-arm tactics are one of the factors which led to this.

Brilliant job by everyone concerned. We can only wait and watch!

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