Tata selects Bengal for small car

Project in the Hooghly district; Rs 1,000 crore investment likely.

Buddhadeb Bhattacharjee today kick-started his third innings as the chief minister of West Bengal by bagging Ratan Tata's dream project, the "Rs 1 lakh car".

Putting to rest all doubts over the location of the project, Tata Group Chairman Ratan Tata said, "Today marks the day when the Tatas have significantly increased their commitment to West Bengal."

He said the group had scanned the entire country, looked at various locations and decided to locate the rather revolutionary project in West Bengal.

The unit will be located in the Singur block of the Chandanagar sub-division of the Hooghly district, west of Kolkata.

Ratan Tata flew from Mumbai right after a Tata Steel board meeting to finalise the project. He was flanked by Tata Sons Director RK Krishna Kumar, Tata Motors Managing Director Ravi Kant, and Tata Steel Managing Director B Muthuraman.

The plant will be spread over an area of 700 acres with additional facilities for a vendor park. The total investment is likely to be over Rs 1,000 crore, including direct investment by Tata Motors as well as investments by its vendors. The plant will initially employ 2,000 people and is expected to create more than 10,000 jobs among vendors and service providers in the vicinity of the plant.

Ratan Tata clarified though the number employed would be 10,000, the Tata Motors project would have a far-reaching impact on future investments in West Bengal.

He commended the state government on the speed and manner in which the project was arranged. The investment in West Bengal was a manifestation of the confidence in Buddhadeb Bhattacharjee, he said.

"This investment is a reflection of the Tata Group's confidence in the investment climate and the West Bengal government. We look forward to the opportunity of revitalising the automotive industry in the state," he added.

The Tata Group chairman also announced a second project in the state for manufacturing earth-moving equipment by Telcon, a wholly owned subsidiary of Tata Motors. The project will be located in Kharagpur and entail an investment of Rs 250 crore.

Tata said the investment in the state was a reiteration of the group's belief that West Bengal was one of the most industry-friendly states in the country.

Elaborating on the details of the "Rs 1 lakh car", Tata said, it would be a four-door passenger car with a rear engine and would have both petrol and diesel versions.

The prototype was currently running at the Pune plant and the construction of the plant would commence as soon as the land was handed over. The chief minister, in his turn, assured that the land would be acquired in the next two months and the process had already been initiated.

The group was in the process of finalising the fiscal incentives package and Tata hoped that it would be at par with packages offered by other states.

As for chief minister Bhattacharjee, responding to queries on future investments in West Bengal, he smiled and asked, "How do you like the beginning?"