Tata Group Chairman Ratan Tata today threatened to pull out of Singur saying that it was not possible to work in an atmosphere of tension and distrust.
The Government of Bengal has been holding talks with the Trinamool Congress leader Mamata Banerjee for the last few days to arrive at a mutually acceptable solution to the opposition of the villagers to the Tata Motors plant which is to produce the low cost car Nano. The controversy surrounds the acquisition of 997-acre plot by the Bengal Government for the Rs 1 lakh car plant at Singur, 40km west of Kolkata.
While the Trinamul Congress led resistance demands that the Government return 400 acres to those who did not want to sell their land, the Government has refused to do so.
Matters took a dramatic turn yesterday with the Trinamool Congress (TC) controlled gram panchayat in Singur saying that it would not grant any permissions to the plant like environmental and water use licences, and also threatened to take action against the company as its factory was blocking the rainwater drainage channel of the entire area leading onto the Hooghly river.
Speaking to reporters after the Tata Tea AGM, Ratan Tata said today: "We are deeply concerned at the violence and disruption and at the safety of our employees, equipment and investments at the project site at Singur," He said: "It is for the people of West Bengal and Kolkata to decide whether we are unwanted or accept us as a good corporate citizen.
"If it is the latter, then it is good."
He said that if it was the other, then it would be impossible to alter the plan "following which we would have to make a move despite whatever investments had been already made in the project."
Visibly disturbed Tata said that Rs 1500 crore of investments had been already made in the project.
"There is a sense of tension, violence and disruption (at Singur). Obviously it is not a conducive atmosphere. The compound wall is broken down, materials stolen." "Whatever be the cost, we will move out if the situation demands so," he said.
Tata said that there was a general perception that Tatas were exploiting the State. "We are extremely sensitive to the needs of the rural community. We have not come to exploit anyone. We have got the land on lease and not bought it."
The State had been long ignored by industrial houses, including the Tatas. "Despite much flak which we have drawn for locating the dream project at Singur, we have decided to locate the project here.
"We are also gifting a hospital to the State which would be commissioned in March 2009," he said. Saying that he had no regret for coming to West Bengal, he said "I am an optimist."
If the project was moved out of Singur, then it would definitely affect the future flow of investments by the Tatas in the State, he said.
Explaining the situation at Singur, Tata said: "It is not possible to work under police protection."
On the issue of 400 acres which had been earmarked for the ancillary units, Tata said that the small car 'Nano' was a unique product. "It is necessary to incorporate the ancillary units in the same location to keep the logistics cost low."
The main opposition Trinamool Congress in the State is insisting that the company set up operations on 600 acres and return 400 acres of land earmarked for ancillary units to farmers from whom the property was acquired forcibly.
With the State Government not relenting to the opposition party's demands, a deadlock has been created leading to tension and violence in the project area.
TC chief Mamata Banerjee meanwhile has said that she would go ahead with the indefinite dharna near the Tata Motors' small car plant from August 24 but was open to dialogue.
She said yesterday that her party had already offered to the state government a solution for return of the 400 acres at Singur to 'unwilling' farmers.
Banerjee offered, “Let the company take whatever land it wants for its 600 acre factory and only after that will the farmers who have not accepted compensation take back their land- I am not insisting on return of the exact land”.
Tata Motors had written a “confidential” letter to Banerjee on the Nano small car project in Singur saying it needed only 600 acres for its car plant, while the other 400-odd acres at Singur would house auto component companies which would supply to the Nano project and also to other clients.
According to the government, this had emboldened Banerjee to ask for return of 400 acres.
To combat this, the state government yesterday produced a letter by Tata Motors managing director Ravi Kant giving an “update” to West Bengal industry minister Nirupam Sen reportedly saying that it needed the full 997 acres now.
