Tata Motors may move out of Singur

Tata Motors threatened to move the Nano car plant from West Bengal amid continued protests against the one-lakh-rupee car project. The investment of Rs15bn that Tata Motors has so far made in the Singur plant would not deter the company from relocating the plant to protect its employees from any violence, Chairman Ratan Tata told reporters in Kolkata. Maharashtra, Punjab and Orissa invited Tata Motors to set up the Nano plant in their states if the company decides to move out of West Bengal.

"If anybody is under the impression that because we have made this large investment of about Rs15bn, we will not move, then they are wrong. We would move whatever is the cost, to protect our people," Tata told reporters in the Oberoi Grand in Kolkata on Friday. "I've made a major investment here... to move will be at a great cost to Tata Motors and to shareholders. But, there is a concern about our people, a definite concern about not being wanted," he said.

"We don’t want anybody to leave West Bengal. But we aren’t really bothered whether the Tatas quit Singur," Trinamool Congress leader Mamata Banerjee said. Chief minister Buddhadeb Bhattacharjee requested all political parties to maintain harmony and allow the project to be set up in the interest of the state. "I am optimistic that the project will come up," he said. But, Banerjee is sticking to its plans for an indefinite siege at Singur from Sunday.

Her principal demand is the return of the 400 acres within the Nano complex. Local farmers, led by Trinamool Congress, allege that the state government evicted them forcibly and transferred what was fertile multi-crop land to the project for a song. The protests turned ugly as local Left supporters and farmers in favour of the project clashed with the protesters. Some 12,000 families have been affected by the project.

Tata Motors started to build its factory in Singur in January 2007 to make the world's cheapest car. The much awaited one-lakh-rupee car was unveiled in New Delhi in January this year and it was likely to hit roads by October. However, if Tata Motors does pull out of Singur, the launch could be delayed. What's worse, Tata Motors could lose around Rs5bn in the event of a relocation. Industry experts say a third of the investment in a car project is irrecoverable.