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Tata miffed by WB govt. delay in handing over land for "peoples' car" project, threatens to pull out

By Surojit Chatterjee
surojit.c@ibtimes.co.in
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Posted 12 December 2006 @ 07:20 pm GMT

Apparent lack of delay by the West Bengal government in acquiring land at Singur as promised to Tata Motors for the latter's proposed Rs. 1 lakh car project, has irked the leading automobile major which has threatened to pull out from the state and look at other options.

Protest against Tata Motor's land acquisition in Singur
Activists of National Alliance of People's Movement, a group of various civil societies, shout slogans against the government of the Indian state of West Bengal at a demonstration in New Delhi, India, Thursday, Dec. 7, 2006. The demonstration wa...

In its first official comment on the land dispute at Singur, Ravi Kant, managing director of Tata Motors, told reporters that there was a possibility that the company might have to relocate its project. He was responding to queries from the media. Kant said the company was working under a tight time schedule.

The West Bengal government is facing stiff political opposition for permitting Tata to acquire agricultural land at Singur and carry out industrial activities.

The prototype of the car is ready and the model is currently being tested. Some of the vendors have been finalized while others are yet to be tied up. The Rs. 1 lakh car is to be launched by mid-2008. On the delay in land acquisition and continuing protests, Kant said, ideally Tata Motors would have wanted to possess the land by now but was hopeful that they would get it "before the year-end."

He said the company had options such as Uttaranchal for the project, but chose West Bengal because it believed in the government. However, Kant added in the same breath that Tata Motors is fully committed to West Bengal and its pro-industrialization policy.

As per the company's plans, Tata Motors would put in place a structured program for community development and impart vocational training to men and women in the project area after getting possession of the land, he said. The company has finalized a training and employment package for the displaced farmers in Singur.

Meanwhile, the state government has managed to complete only 40 percent of disbursement for the acquisition of land in Singur through its special payment camp at the block office.

The state government has also directed WBIDC to take possession of the site and transfer it to the company.

Industry secretary Sabyasachi Sen told media that the Land and Land Reforms department had already acquired 1,000 acres and has ordered WBIDC to take possession of it.

He said that WBIDC would now apply for mutation, after which it would be given to Tata Motors.

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