The Tata Motors small car project in Singur may yet be moved out of West Bengal as the company expressed its dissatisfaction over certain ambiguous aspects of a compromise deal that was hammered out after hours of hard bargaining

Despite a compromise deal hammered out a few days ago on the controversial Tata Motors project in Singur, West Bengal, the automobile company remains unhappy. A company statement read: “Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant.” The company will review its “stated position only if we are satisfied that the viability of the project is not being impinged”.

Tata Motors is allegedly upset over reports that the government has agreed to return to farmers land acquired for the vendors’ park. There was no mention of this in the statement read out at the end of talks between the two sides. This apparent lack of clarity is forcing the automobile giant to continue looking for an alternative site for its 1 lakh car, the Nano.

The fortnight-long Singur crisis appeared to be over when Trinamool Congress leader Mamata Banerjee suspended her agitation after marathon talks with the ruling Left government in West Bengal.

According to the compromise formula, farmers who refuse to accept compensation would be given “maximum land” from the Tata project area, and the rest from outside it. A committee will be formed to settle the modalities; it will have to give its report within seven days. Till then, while work at the Tata Motors factory can resume, construction of the ancillary units around it will be on hold, said mediator and West Bengal Governor Gopal Krishna Gandhi.

Following this announcement, the farmers’ agitation was called off and the Durgapur expressway, closed to traffic as a protest strategy, re-opened.

A section of farmers who owned around 400 acres out of the 997.11 acres acquired for the Tata project and ancillary units wanted the land to be returned, claiming that it had been forcibly acquired.

The Trinamool Congress started an indefinite dharna on August 24, demanding the return of 400 acres of land to the “unwilling” farmers in Singur. This led Tata Motors to suspend work at its factory to produce the world’s cheapest car -- the Nano -- priced at Rs 100,000.

Tata Motors has been thinking of moving out of Singur because of what it calls the “environment of obstruction, intimidation and confrontation”. It made public its plan to “evaluate alternative options for manufacturing the Nano at other company facilities and a detailed plan to relocate the plant and machinery to an alternative site”.

The company’s auto ancillary partners, who had commenced work at their respective plants in Singur, were also forced to suspend work in line with Tata Motors’ decision.

Source: Hindustan Times, September 9, 2008
             The Telegraph, September 8, 2008
            The Economic Times, September 8, 2008
            Hindu Business Line, September 8, 2008