27Aug/080
Tata to exit WB if disturbances continue in Singur
TATA MOTORS has decided to wait for another fortnight and finally exit from Singur if the troubled situation does not improve. The company, which has invested more than Rs 1,500 crore in its cheap car ( Nano ) producing unit in Singur is baffled by the inability of West Bengal government to tackle the Trinamool Congress leader Mamata Banerjee who is laying a siege near the factory at Singur. No trucks are being allowed by Trinamool protesters near the factory stopping supply of materials to the plant.
Threat of a Tata withdrawal may not cause more than 100-200 crore loss to the company and the company has been also saying that the proposed launch of Nano in the market in the incoming festive season will not be affected.
It appears that Tata has already produced enough Nano cars in its plant located near Pantnagar (Uttarakhand) and Pune, which may serve to satisfy the initial demand at the official launch. In such a situation, the loss will be to both the people of West Bengal and its government as states like Maharashtra, Orissa and Uttarakhand are eying this Tata unit. Some states like Maharashtra even wants to give tax concessions to the company if it brings its factory to their states.