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Singur factory pullout

After much speculation, Tata Motors announced on May 19, 2006 that it will bemanufacturing Tata Nano fromSingur ,West Bengal.

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However, within a week protests were started by a few farmers in the area against the acquisition of their lands by Tata.

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The cause was taken up byMamata Banerjee, the leader of Trinamool Congress.

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The situation escalated with Tatas threatening to pull out,

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and disruption of compensation for farmers who had volunteered to sell their land by anti-acquisition activists.

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This was followed by a state-wide bandhbyTrinamool Congress in October.

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The government banned political parties fromholding meetings or processions at Singur and installed a huge police force there.

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There was widespread violence in the clashes between the police and thefarmers on December 2, 2006.

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On December 4, 2006Mamata Banerjeeentered into a hunger strike. A 48-hour strike was later called by her to protest the death of Tapasi, a Save FarmlandCommittee campaigner, whose burnt body was found at the Nano plant site inSingur.

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TwoCPMactivists were later convicted and sentenced to lifeimprisonment for the murder.

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On the 24

day of her strike, Banerjee was givenoxygen support and finally called off her fast after appeals from the thenPresident Abdul KalamandPrime Minister Manmohan Singh.

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As the protests over the land continued in 2007,

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Ratan Tataaccused that thecompetitors had a role in the controversy.

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The acquisition of land was initiallycriticised in February 2007, but later approved by theCalcutta High Courtin 2008.

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As political unrest and rains hampered the construction, Tata Motorsdelayed the launch of Nano to September 2008.

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Violence continued throughout 2008

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and on September 2, 2008, TataMotors announced that they have suspended work at Singur.

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On October 2,2008 Tata Motors announced that they are pulling out of Singur.

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On October 7,2008, it was announced that the Chief Minister of Gujarat, Narendra Modihad signed anMoUwith Tata Motors for allocating land for Nano factory inSanandin Ahmedabaddistrict of Gujarat.

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[edit] Criticism, issues and problems

[edit] Questions of safety

The Times

says:

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“

India has 8 percent of the world’s vehiclefatalities and less than 1 per cent of its

”

cars, with more than 90,000 people killedon the country’s roads every year.Introducing a million Nanos into the mixmay bring more – and unwelcome – headlines.Tata, which has the only crash-testfacility in the country, said that the Nano"exceeds current regulatoryrequirements". And while it is not adeathtrap – it hascrumple zones, seat belts and strong seat anchors – it is worth bearing in mind that total vehicle crashtesting (rather than just frontal impact),airbags and antilock braking systems arenot mandatory.Without these, the Nano would not even be considered for approval in Britain.Adding them would double its price inIndia, which is why they have beenomitted.

Tata Motorswill offer a version of the Nano with these safety-features, includingan airbag system in its electric version

[

citation needed

]

. The Nano has an all sheet-metal body made fromJapaneseandKoreansteel,

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with safety features such as

crumple zones, intrusion-resistant doors, seat-belts, strong seats and anchorages,and the rear tailgate glass bonded to the body. Tires are tubeless.

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West Bengal's Nano Impasse: A Roadblock for Tata – andfor Investment

Published: September 18, 2008 in India Knowledge@Wharton

The slogans on signs in Singur -- the West Bengalsite where Tata Motors plans to manufacture the Nano, its $2,500 small car -- say it all. Most are inBengali, but the few in English capture theoverriding sentiment. "Nano No No," reads one."Atta not Tata," says another. Atta, which is flour made from whole wheat, refers to the corequestion of the dispute: Should fertile farmland berequisitioned for industrial purposes? Does food get priority or factories?According to faculty at Wharton and the Indian School of Business, theimpasse over the plant in West Bengal threatens to increase the Nano's production costs and could delay its entry into the domestic market.Moreover, they say, it will likely impact investment in the region, asoutside companies shy away from antiquated land laws and politicaldisruption.As things stand today, work has been suspended at the Nano plant. Tatahas closed shop because, as chairman Ratan Tata told journalists inKolkata (formerly Calcutta): "I can't bring our managers and their families to West Bengal if they're going to be beaten, if there is going to be violence constantly, if their children are afraid to go to school."Tata has faced trouble ever since it got the go-ahead for the plant onMay 18, 2006. Just a week later, there were angry demonstrations byfarmers objecting to the "forcible" acquisition of land for the project.The Trinamool Congress, a political party led by Mamata Banerjee, whohas been spearheading the agitation against the Left-ruled West Bengalgovernment and the plant, even staged a hunger strike.Matters came to a head recently, with the Nano due to roll out inOctober this year. On August 24, the Trinamool Congress started anindefinite protest at the factory gates and stopped all access to vehicles.