Tata considering shifting Nano plant from West Bengal (Roundup)

Sep 2, 2008, 16:17 GMT

New Delhi - Indian auto major Tata Motors said Tuesday it was considering shifting its low-cost Nano car project from eastern West Bengal to some other region, given the continuing protests over farmland acquired for the plant.

Tata's statement came as work at the factory coming up in Singur, about 40 kilometres north of the West Bengal capital Kolkata, remained stalled for the fifth day Tuesday with demonstrators blocking its gates demanding the return of farmland acquired for the project.

Earlier, there was a glimmer of hope that the stalemate over the plant may end after leaders of the agitation said they were ready for a dialogue overseen by an 'impartial mediator.'

The West Bengal government has also backed down, with the ruling Left Front chairman Biman Bose saying Monday that the government was ready for an unconditional dialogue, including a debate on the disputed 400 acres.

Tata Motor's Nano factory is being built on 997 acres of land acquired from farmers of which 400 acres is owned by farmers who have refused compensation and claim the government has forcibly seized their land.

Tata Motors, which was planning to roll out its first Nanos from the Singur factory in October, said in a statement: 'In view of the current situation, the company is evaluating alternate options for manufacturing the Nano car at other company facilities, and a detailed plan to relocate the plant and machinery to alternate site is under preparation.

'To minimise the impact it may have on the recently recruited and trained people from West Bengal, the company is exploring the possibility of absorbing them at its other plant locations.'

Tata Group chairman Ratan Tata had warned in August that he was prepared to abandon the Singur plant and move the Nano project to another state if the stalemate continued despite having invested over 350 million dollars in the project.

Workers remained away from the factory on Tuesday with the factory management saying the atmosphere was not conducive for normal work.

Hundreds of protestors from the Trinamool Congress, farmers and members of some smaller left parties along with a few Maoist organizations continued their sit-in demonstration outside the factory.

Banerjee has said the agitation would continue while negotiations were taken up.