India Inc reacted with dismay to the developments that led the Tata group to suspend its operations at the Singur plant. The consequences, they felt, would be far-reaching.
“It’s a huge setback. Investors will reassess investment decisions in various locations,’’ K.V. Kamath, president of Confederation of Indian Industries and MD & CEO of ICICI Bank, said.
Industry captains wondered if the Tata Group, which was known for its integrity, had to give in to political pressures, others couldn’t be far behind “Politics has brought the project to a grinding halt. This is not only bad for West Bengal but for the entire country,’’ Venu Srinivasan, CMD, TVS Motors, said.
India’s most prestigious project, which has fallen prey to politics, raised a fundamental question on the role played by some political leaders who often ignore the larger interests of the country for their narrow goals.
‘This shows that political parties are not taking decisions that are in the interests of the country. This is sending wrong signals to the rest of the world as Nano is a banner project and the whole world is watching," R Sheshasayee, Managing Director, Ashok Leyland said.
Some others voiced concerns over West Bengal’s future as an investment destination. “If Tatas pull out of West Bengal, it will adversely affect investments coming into the state,’’ A M Naik, Chairman, Larsen & Toubro, said. He called for an amicable solution to the ongoing tussle. "I feel that everyone involved in the issue should work towards a settlement."
“Nothing could be worse at a time when the manufacturing activity in the state had just gathered momentum after a long hiatus,’’ Pawan K Ruia, chairman of Dunlop India and Jessop Ltd, said. “Putting the process back on track will be a Herculean task"
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The cement industry, which is building new capacities to meet the growing demand of infrastructure companies, was dismayed at the development. ''We are very much agonised by this. If Industry needs land, where would they go?;”’ asked H.M. Bangur, managing director, Shree Cement.
The Federation of Indian Chambers of Commerce and Industry said that it looked forward to the Tata Nano car rolling out as per plan, even if production were to happen at another plant.
Rajeev Chandrasekhar, MP, who is the Ficci President, said the stoppage of work and a possible pullout is obviously unfortunate. “We wish that the Singur dispute had not reached this point and I believe it need not have if there had been better and more open dialogue between the investors, government and the local community earlier on.”
Calling it a missed opportunity for West Bengal, Confederation of Indian Industry Director General Chandrajeet Banerjee said "It is the absence of a dialogue between the concerned parties that led to such an unfortunate decision by the Tatas."
Still, some companies that have already made investments in West Bengal, said they would go ahead with the project in West Bengal. “We will go ahead with our projects in Bengal irrespective of what the Tata group is doing,’’ Neeraj Singhal, managing director, Bhushan Steel, said. The group is investing Rs 8,000 crore in setting up steel projects. “We chose barren land and are not facing any problems,’’ he said.