Violent protests might force Tata Nano plant to move |

According to Automotive News, India’s Tata Motors might have to reconsider its plans for the Nano plant and move it somewhere else. The initial location, in Singur, West Bengal state is the subject of violent protests political opposition. All started after the Indian government took over 1,000 acres of farmland for the factory. Though offered compensation, some farmers with smaller land holdings have refused, demanding that land be given back to them. The $350 million investment from Tata is seen as rejuvenation of industries in West Bengal, but Tata said that they’ll decide to relocate if they consider that the safety of their employees and workers will be affected.

“What has concerned us is the violence, the disruptions, that has led us to be concerned about the safety of our employees, our equipment and investment, and of the viability of the process,” Chairman Ratan Tata told reporters in Kolkata, the state’s capital, on Friday. “If anybody is under the impression that because we have made this very large investment of 1,500 crore rupees ($350 million), that we would not move, then they are wrong, because we would move to protect our people,” he said.

The problem is that even though Tata has said the plant at Singur would be the first, but not the only plant to make the Nano, so far there’s no plan B for Tata, in case things don’t work out here. The outcome of this conflict is also expected by other automotive giants like Renault, Nissan Motor, General Motors, Hyundai Motor, who planned investing in India, but might reconsider.

Source: Automotive News (Via Autoblog)

Post tags : india, Tata, Tata Nano