labels: Cars
Nano project in limbo despite Singur land deal news
08 September 2008

Ratan TataMumbai: Work at Tata Motors' low-cost car `Nano' is yet to resume with the company insisting that it would have to ensure the viability of the project after the land deal between the government and the agitators led by Trinamool Congress chief Mamata Banerjee.

The land deal between the West Bengal government and Mamata Banerjee to resolve the Singur land row lacked clarity and the Nano mother plant will remain closed until a the agreement was found viable, Tata Motors said in a statement.

The viability of the project is closely linked to availability of components and spares and the proximity of ancillary units is crucial for that, the company said.

''Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant,'' the  statement said.

''We will review our position only if we are satisfied that the viability of the project is not being impinged, the integral nature of the plant and ancillary units are being maintained and all stakeholders are committed to developing a long-term congenial environment for smooth operations of the plant,'' the statement said.

Tata Motors insisted that it won't settle for anything less than 1,000 acres of land for the project just as the Mamata Banerjee-led farmers said they won't surrender fertile land for anything.

The agitating farmers in Singur, who had forced Tata Motors to suspend work, last week agreed to call off their strike after the state government promised to return some of the land.

It was, however, not clear as to how much of the acquired land would be returned to the farmers. While some reports said about 100 acres would be returned to the farmers, other reports said the farmers would be allotted land nearby with provision for irrigation facility.

Farmers had insisted that of the 400 acres of fertile land acquired for the Nano project some were acquires forcibly.

Tata Motors said it would review the project only if it was convinced of the viability of the project, considering the integral nature of the mother plant and ancillary units.

Trinamool spokesperson said the party cannot compromise any further on farmer's interest and the objections raised by Tata Motors were its own problem.

The company's employees also seem to be taking more time to return to work after the forced leave from work.

The deal between the agitating farmers and the West Bengal government, brokered by state governor Gopalkrishna Gandhi, calls for the setting up of a committee to look into the demands of the affected farmers.

It was also not known when and how the committee would submit its recommendations.

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Nano project in limbo despite Singur land deal