Wednesday, October 15, 2008

TATA NANO: A NO-NO FROM SINGUR FINDS NEW HOME AT SANAND, GUJARAT

Thanks to the every one for their comments and suggestions on my very first article on “TATA NANO – A BIG NO NO!!”

One of the reader asked few questions to me on this article. These are as follows:
  • What are the chances of NANO’s rolling out from Singur?? If not, Singur what will be the next destinations for the TATA’s.
  • Will other state governments will be able to provide them the acres of land TATA’s looking for (with their red carpet welcome)? How they ensure of no agitation at their proposed sites? Are these lands are industry specific??
  • He raised a big question on “WHAT TATA’s should do now” ?

[He also correctly pointed to the statement of Mr. Lakshmi Mittal, Chairman, Acrelor Mittal. “Situation like Singur can happen anywhere”. Yes we have the examples of troubled mega venture projects like POSCO, Arcelor-Mittal, TATA Steel, Essar, Jindals’ Steel project, Bauxite mining project of Vedanta, SEZs of Reliance, and Videocon etc.
(Just to mention) At stake are over 20 mega projects across India with proposed investments of over Rs 233K crore which is about 3 times the total FDI India received last year. ]

We have seen Mr. Ravi Kant (MD, TATA Motors) was on his heels with his team and meeting various state government officials as well as visiting the proposed site for more than a period of fortnight.

This gave enough indication to West Bengal Government to smell the exit of Tata Nano from Singur. The Chief Minister of the state wrote his last hope with the letter to Mr. Ratan Tata to start the work at Singur. Mr. Ratan firmly replied to his letter by saying him” he will meet him next week”.

Finally the day came on October 3rd when Ratan Tata announced the pull out of Nano from Singur. Ratan Tata's decision sent shockwaves across the state and among the farmers, who given away the land and having lost prospects of jobs.

With this announcement, other State governments really worked hard to woo TATAs to bring Nano project to their state. This time TATAs looked careful, vigilant to make their site selection free from hazards.

Just Few days after on October 8th, a visibily relaxed Mr. Ratan Tata announced the relocation of Tata Nano project to Sanand, Gujarat (35 Kilometers from Ahmadabad). Mr. Ratan praised Gujarat Chief Minister for his fast and speedy process in handover of 1100 acres of land.

Inside Look at State of Gujarat & TATA’s on inking the Deal.

  • A good statesmanship by Chief Minister of Gujarat
  • He has confessed that :
  • - his state has Industrial Map ready (Which played a major role in bringing nano to his state).
  • - he always engaged in discussion with land owners and opposition for preparing better industrial map for the state throughout the year.
  • State able to transfer whole 1100 acres of land to TATAs in 2days of effort.

To conclude this, our state heads must prepare the better industrial map for their states to woo large FDIs in their state.

Thank you

Sushanta Kabi

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