labels: Economy - general, Cars
WBIDC calls off meeting with Tata Motors: CNBC TV 18 news
28 August 2008

Mumbai: Tata Motors has informed its vendors  that the West Bengal Industrial Development Corporation (WBIDC) has called off a meeting to be addressed by industry secretary S Sen, according to a statement issued by WBIDC managing director Gupta, reports CNBC TV 18.

''We are told that the industry secretary was possibly apprehensive about this meeting being misconstrued. Hence, they have called it off now. There is a lot of protest and agitation still going on. This is the fourth day that there is no work at the plant. Tata Motors will have to come up with some solution on whether to leave this plant and set up elsewhere,'' the report quoted a Tata Motors official as saying.

We understand from vendor sources that Tata Motors has already communicated to the vendors and has told them that they will take the vendors along, wherever they go. Sources tell us that Pantnagar, the facility that Tata Motors already has in Uttarakhand, could be a very probable location where Tata Motors could start manufacturing or producing the Nano," it said.

Vendor sources also indicate that if Tatas were to choose Pantnagar and start production at this stage, they can easily manufacture 3,000 cars per month to begin with and then eventually that can be scaled up. The chief minister of Uttarakhand has also said that the state would welcome Tata and said that they had talks at the official levels.

''We are offering them power at very low rates and we are also providing them land. The labour environment is also very good,''  Uttarakhand CM BC Khanduri said.

Tata Motors has a huge facility and they are manufacturing their light pick-up trucks and there already are 54 suppliers at the vendor park in Pantnagar. Most of the vendors are common. So this could have been easier and would add to the advantage of the vendors if they go there.

The Pantnagar plant has a capacity to roll out 3,000 cars per month. As far as impact on vendors is concerned, they are willing to move if the Tatas leave.

Their vendors Lumax, Endurance, JBM, Minda etc - all have the facilities at Pantnagar. So it looks like Pantnagar is the destination, if Singur doesn't work out. It looks like Tata may have to shfit as the projeect might be delayed if it doesn't, the report noted.

Meanwhile, protests in Singur continued for the fourth straight day. Mamta Banerjee stuck to her demands asking return of 400 acres to the farmers.


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WBIDC calls off meeting with Tata Motors: CNBC TV 18