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Singur Impasse: Tata Motors hardens stance, West Bengal govt. backtracks on truce "deal"

By Surojit Chatterjee
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Posted 11 September 2008 @ 08:01 am GMT

India's third largest car maker, Tata Motors has thrown a spanner in the ongoing efforts made by the West Bengal government and opposition Trinamool Congress (TMC) party to resolve the Singur land controversy, by threatening to relocate its Nano plant to another site unless the state government takes measures to preserve the integrated nature of the Nano project.

Guards stand beside the main entrance of the Tata Motors plant in Singur
Guards stand beside the main entrance of the Tata Motors plant in Singur near Kolkata, West Bengal on September 8, 2008. Efforts to resume construction of a factory to build the world`s cheapest car were stuck, as India`s Tata Motors raised doubts ov...

The state government and TMC had reached an agreement on Sunday, September 7, that the government would return the disputed 400 acres of land to the farmers while TMC-led protesters would call off its protests and allow Tata Nano project to continue.

The accord ended the 15-day standoff between the state government and TMC in Sangur that began on August 24 and was marked by violent protests and demonstrations.

However, crying foul, Tata Motors refused to commence work at its Nano plant, saying that it was "distressed" at the limited clarity in the outcome of talks.

It may be recalled that on September 7, West Bengal Governor Gopal Krishna Gandhi who had mediated a truce between the protesters and the state government, had said the West Bengal government "has taken the decision to respond to the demands of those farmers who have not received compensation by means of land to be provided to the maximum within the project area and the rest in the adjacent area."

"The government and those who have been agitating on behalf of the farmer will cooperate with each other for the benefit of the industry, agriculture and ancillaries," the governor had said.

A committee would be set up to oversee the return of land to the farmers within a week, Gandhi had said. On the basis of the committee's report, part of the land that would be returned to the farmers would be carved out from the project site and accordingly, the affected component vendors would be shifted to adjacent regions, the governor had said.

Meanwhile, the vendors were also urged not to go ahead with the construction of their respective facilities.

Though the quantum of the land was not disclosed in the governor's statement, TMC's firebrand leader Mamata Banerjee said the state government had agreed to return about 400 acres of land (300 acres inside the Nano project site and 100 acres outside the site) and request the vendors to move to adjacent land.

However, earlier this week, the state government did a volte-face, saying it never agreed to return the land acquired for the Nano plant to the farmers or relocate the vendors to adjacent land. "There will not be any change in the Tata project nor any relocation of vendors' park," Nirupam Sen, West Bengal Commerce and Industry Minister, said.

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