Small Car Big Troubles ; the Fate of the Tata Motors Plant Will Be a Benchmark for All Future Projects in the State and Investors, Who Have Signed Mous, Are Looking at Its Fate to See What Lies Ahead for Them

India Today › March 01, 2007

Linked as:

Summary

On the day when Buddhadeb Bhattacharya was sworn in as chief minister for the third time in May last year, his office received a fax message that sparked widespread celebrations in the Writers' Building. It was from Ratan Tata, simply informing the chief minister that he would like to come over since there were matters to be discussed. The announcement by the Tatas that they would locate the plant for the Rs 1 lakh car in West Bengal triggered off a flood of investments in the state. More importantly, it brought back the confidence among its people that the state could make its industrialisation policy, mostly in cold storage for the last 15 years, actually bear fruit. West Bengal, the state mostly written off in the 1980s because of its trade union backlashes, had shaken off its past and was poised to enter a brand new economic era.

All that may be a thing of the past, if, in one stroke, Tata Motors finally decides to call off its plans. For now, Bhattacharya can only hope that he doesn't need to break any more eggs to make his industrialisation omelette. At least, not more than those which have already been broken. For one, the Tata Motors plant will be a benchmark for all future projects in the state and every other investor, who has signed MoUs with the state Government, is looking at its success to go ahead with their plans. Second, the 10,000 jobs that the plant and its peripheral industries are set to generate go for a toss. Third, West Bengal's economy, which was at least looking to be prosperous in the next 10 years, will never see such a thing.

See the full content of this document

Extract

Small Car Big Troubles ; the Fate of the Tata Motors Plant Will Be a Benchmark for All Future Projects in the State and Investors, Who Have Signed Mous, Are Looking at Its Fate to See What Lies Ahead for Them

Right now, the state can only consider two possibilities, both equally unpleasant. First, the worst-case scenario. Show of solidarity notwithstanding, it is apparent now that the Tatas are getting increasingly uncomfortable about the violence in Singur, which shows no si...

See the full content of this document