New Delhi: The state government in West Bengal is trying to tackle the anti-acquisition movement spearheaded by TMC leader Mamata Banerjee but the Tatas have lost a lot of time waiting for resolution at Singur.
Not wishing to delay the Nano car project any longer, Tata Motors has decided to move on with production resuming at another plant owned by the company.
Sources inform that Tata Motors has asked its vendors to send components and parts for about 200 Nano cars to their plant in Pune.
It was being speculated that operations could shift from the Tata Motors' Singur plant to either its Pune plant or to its Pantnagar plant in Uttaranchal.
Tata Motors had said on Monday that it would not immediately restart production of its super-cheap Nano car in Singur even though farmers and the Trinamool Congress brigade opposed to the plant ended weeks of violent protests.
India's industrialisation plans
The conflict has become a case study of how India's march towards rapid industrialisation is going to be fraught with complexities even as it tries to haul 456 million of people out of absolute poverty through the process.
First, the prestigious Nano project, touted as the world's cheapest car was held hostage by local politicians and agitating farmers.
The Nano production never really took off from the ground as well as it was meant to, as the company had to face roadblocks, agitations and violence just outside the factory at Singur.
The delay at Singur has taken a toll on the total cost of the project. An earlier estimate had pegged costs at Rs 1,500 crore but that has already escalated to Rs 1,800 crore.
And relocation the entire project to either Pune or Pantnagar would mean reworking the vendor strategy completely.
That would bring immense loss to the vendors who have invested into infrastructure, employment and project costs.
Costs would climb even further for Tatas as well as the vendors. But Ratan Tata has reiterated his promise of the car under Rs 1 lakh and that stands true, even given all the problems Tata Motors have faced.
So all eyes are now on the Pune plant of Tata Motors as the consumer eagerly awaits the Nano which brought mega trouble to the Tatas.
(With inputs from CNN-IBN and AP)
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