THE NANO NIGHTMARE
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Tata vs Trinamool: Who will have the last laugh?
Published on Sat, Aug 23, 2008 at 02:42, Updated on Sat, Aug 23, 2008 at 03:00 in Business section
Tags: Tata Motors, Nano
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The Chairman of Tata Group, Ratan Tata, has threatened to abandon plans to build the world's cheapest car, the Nano, in West Bengal if the violence continues at the project site in Singur.
Tata's threat of withdrawal comes even as Chief Minister Buddhadeb Bhattacharjee has offered to try and end Trinamool Congress' opposition to the project through fresh dialogue.
To clear air on Tata’s plans and Trinamool Congress’ troubles, Sandipan Chakravorty, Managing Director Tata Ryerson, - one of the companies that runs the ancillary units that Trinamool has been targetting – and TNC spokesperson Derek O Brien spoke with CNN-IBN. Following are the excerpts from that chat.
CNN-IBN: With Tata threatening to pull out and suggesting that other international investors will follow suit, do you think your protest will cost West Bengal dear?
Derek O Brien: We need to find out who is responsible for West Bengal. It’s Chief Minister Buddhadeb Bhattacharya. In 2006, Mamata Banerjee went on a 26-day fast at the end of which Bhattacharya gave her a written assurance that he would like to solve this by dialogue. Our basic issue is: Please keep 600 acres Tata Motors but return 400 acres of land taken from unwilling farmers who do not want to give their land. But there was no communication from CM after that. We are saying that we too want industry in West Bengal but not at the cost of farmers.
CNN-IBN: Sandipan Chakravorty, why are these 400 acres so important? Why, irrespective of the Nano, do you need these ancillary companies to come so close to the project?
Sandipan Chakravorty: Let me explain that it’s not a question of 400 acres being important to the Nano. What we must understand is that 1,000 acres are essential for the Nano. Nano comprises of 600 acres which is an earmark for Tata Motors. The Tata Motors unit will only have the engine producing unit and the assembly line there. All components - from headlights to chasis to battery to pumps - will be produced by the vendors.
CNN-IBN: We heard a veiled threat from Ratan Tata. Are Tatas prepared to pull out of the whole project entirely?
Sandipan Chakravorty: I would not say that Mr Tata has made a threat. He has just stated it very plainly. This car was supposed to be out in markets in May or June. It’s already been delayed for which the Tata group feels is no fault of theirs. What Tata is responsible and confident about is taking a car out at Rs 1 lakh. The logistics, technology are important.
CNN-IBN: Derek O Brien, do you think after what Mr Tata said today, you’ll have any company coming to West Bengal and making investments?
Derek O Brien: Let’s assume the company does not come. There are others who would come. It’s an excellent question but who is responsible for West Bengal? Ask this question to the CEO of the state. We have been asking the government to disclose the deal since 2006…
CNN-IBN You are blaming the government but you are also stopping them from doing anything over there. You’ve got their hands tied.
Derek O Brien: We represent those farmers who’ve lost their land. It’s not a new problem. It’s been going on for two years. The chief minister is sitting cushy and now that the horse is about to bolt, he talks about talks. No credibility.
CNN-IBN: If you continue with your violent protests how do you intend to get those 2,000 families on that 400-acre land to your side. The Tatas are not bad employers, they’ve said repeatedly they are willing to take family members from those families into the plant.
Derek O Brien: It’s difficult to tell the farmers – who’ve been tilling the land – that you stop doing that and we’ll make you fitters and mechanics. It doesn’t work that day. Tatas or anyone else is welcome but not by trampling over farmers.
CNN-IBN: Sandipan Chakravorty, is there an easy solution?
Sandipan Chakravorty: As the chairman of CII, Eastern Region, all industry bodies were extremely anxious primarily because if something happens to the Nano project, it’s unlikely that any new project will come to West Bengal. So we worked together and we had Mamata Banerjee at the talking table for a dialogue. We feel it seems it’s political. People who gave 600 acres of land are very happy and suddenly people who have to give 400 acres aren’t.
CNN-IBN: Are you reasonably assured Nano will roll out in time?
Sandipan Chakravorty: I am an optimist. Mr Tata has made a statement. He’s also hopeful the politicians will find a solution because it’s not difficult to do that.
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