Thursday, August 28, 2008

Will The Tata Nano roll out as per schedule?


The West Bengal Chief Minister tried to instill confidence to a group of industry leaders that the Nano will stick to its October schedule and everything will resolve soon as he is going to convince the opposition on his decision and arrive at a consensus. Earlier the opposition had demanded the returning of 400 acres of land for the ancillary units which was ruled out, as returning the land would mean that the project would be abandoned. He also explained that as the land is for public purpose, the law does not allow the land to be returned to its original owners. There are certain special schemes that are going to be put in place for those farmers who have become unemployed. He also assured the gathering that the Singur drama was a one off issue and the general economic climate in the state is good. Apart from the Singur plant being a key factor in revitalising the industrial setting in West Bengal, the Nano in itself is going to put India firmly on the world map. Such bottlenecks are part and parcel of the development stage which would subside and be diluted in the long term memory of the Indian public. With the bigger picture in perspective, strides have to be taken forward.
The Nano plant has seen continued protests on the land acquisition row from the opposition and the farmers with fresh protests hampering work. It is now all but certain the launch of the Nano will be delayed. Production was supposed to commence on the Nano. Ratan Tata has indicated that other avenues are on the cards. But this could just as well be a threat to the current government since they are hell bent on cleaning up the mess outside the production facility. The Rs 1500 crore investment will be on the back of Ratan Tata’s mind even though he claims that they would not hesitate to look for avenues elsewhere.
Offers have been pouring in from nearby states such as Uttarakhand, Maharashtra, Orissa and even Punjab and this is just to name a few. But then again to get the logistics in order along with all the processes and a changed production model will completely put the Nano out of gear, which is apart from the cost implications that Tata will have to incur in case of a change in location. They have set a two week deadline after which they will come to a conclusion. In other words, the West Bengal government has 14 days to resolve the issue which now has gained even more momentum with the involvement of Medha Patkar into the scenario. With 500 Nanos ready from the Pantnagar and Pune plants, the official release will not be delayed. What will be affected though is the delivery dates. Ratan Tata has dismissed the option of operating the plant under police protection which clearly says that the problem has to resolved or Singur will return to its agricultural background.

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