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 an alternate site is under preparation. To minimize the impact this 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.

Construction of the plant has faced challenges at various points of time. There has however been a significant decline in the attendance of their staff and contractual labour since August 24, 2008. Some of the international consultants working on the plant have returned home and the construction work in the plant has been stalled since August 28, 2008. In fact, the existing environment of obstruction, intimidation and confrontation has begun to impact the ability of the company to convince several of its experienced managers to relocate and work in the plant. Further, several persons engaged in the construction and commissioning work who had taken accommodation at Singur and nearby areas have since vacated and have gone away due to intimidation and fear.

Construction of the Nano project comprising of the Nano manufacturing facilities and the vendor park, a normal feature in modern world-class auto plants, commenced in January 2007.  The work on the construction and commissioning of the plant had been nearing completion in line with planned schedules. During construction, this project employed about 4000 employees at its peak including several hundred young residents from and around the region. 

As a part of its commitment to enhance the employability of its people. Tata Motors has trained over 762 ITIs and other apprentices from the region and the state. They have undergone retraining at the Tata Motors facilities in Jamshedpur and Pune. Tata Motors’ efforts to offer medical care in and around the region, which had handled over 17,000 medical cases, have been forcefully stopped by violent agitators. As part of the proposed integrated auto cluster in Singur, about 60 key auto ancillary suppliers to the Nano have taken possession of land in the integrated complex and have invested about Rs.500 crores towards construction of their plants and procurement of their equipment and machinery.

Commenting on the situation, a Tata Motors spokesperson said, “The situation around the Nano plant continues to be hostile and intimidating. There is no way this plant could operate efficiently unless the environment became congenial and supportive of the project. We came to West Bengal hoping we could add value, prosperity and create job opportunities in the communities in the State.”

Cumulative sales (including exports) for the company for the fiscal are at 803,322 nos. a growth of 25% over 642,664 nos. sold last year.

Mumbai, August 29: The emerging situation with regard to the upcoming Nano project in West Bengal is disconcerting. The adverse impact of the continued violence and intimidation of the work force of the Nano plant is not restricted to Singur or West Bengal but will resonate in India’s global image.  This was stated by Mr. Tarun Das, Chief Mentor, Confederation of Indian Industry (CII).

The CII statement also said that the process of development and growth being held ransom for short sighted political mileage is unwarranted and cannot be dismissed as a problem of a particular state.

The Nano project has caught the attention of the world and showcased India’s potential as a small car manufacturing hub. It is critical for all stakeholders to encourage investments in the country and create a cordial investment climate at a time when the country is striving to sustain its impressive GDP growth, added Mr. Tarun Das.