Tata Nano Project : Will the Worlds Cheapest and Smallest Car Roll Out on Time?
Posted on September 6, 2008 in Current Affairs by Danteshwari
Nano, the world’s cheapest and smallest car, to be launched by Tata Motors and meant to be easy on the budget, is facing severe opposition by political parties in West Bengal, who do not favor the setting up of the industry there. The car, which is to cost Rs.1 lakh plus is expected to be launched very soon, despite the protests being organized by party workers of the Trinamul Congress.
Ratan Tata, Chairman of the Tata group has stood firmly on his ground to bring out the car on the road at the stipulated time, even if he has to relocate the industry in another state. It may cost him a lot, but he is willing to bear the cost to keep up to his commitments.
The plant which is to be located in Singur in West Bengal has been facing violent protests, which could threaten the lives of the company workers and staff. Furthermore, in the future also such incidents could mar the efficiency of the industry. Considering all these factors, Ratan Tata felt it better to relocate the industry elsewhere.
This firm stand taken by Ratan Tata has perhaps softened the approach of Ms. Mamta Bannerjee, Chief of Trinamul Congress who is now willing to compromise to some degree by asking her protesters to allow the traffic on the Durgapur Expressway and to stay away from the Nano plant. She favored the Tata Motors small car to roll out on time from the Singur factory.
The problem in Singur began due to the takeover of 400 hectares of agricultural land for setting up of plant. Some of the farmers of these small holdings felt the compensation given by the state government was not adequate. Subsequently, of course, the farmers did not favor the withdrawal of the plant from Singur, but at the same time they wanted a better compensation package from the state government for their holdings.
The Industry would otherwise prove to be a boon to the West Bengal, as it would provide jobs to many and would set the pace of industrialsation in Singur. Being a major project and attracting world- wide attention, Singur can benefit in many ways industrially. Tatas are major investors in the country and can offer much to people of Singur. West Bengal can also be proud of launching the world’s cheapest small car. Allied industries can develop and can lead to further employment.
The raging controversy now hampering the setting up of the Nano project can deter other industrialists from investing in West Bengal. Sushel Seth, managing director of Counselage, a strategic branding firm, was quoted by New York Times as saying whether any foreign company would be willing to invest in India, when a respected group is unable to set-up an industry in a state. Obviously, the repercussions of the Trinamul Congress protests are serious enough to hamper the rapid growth of industrialization within the country and modernizing it in many ways, particularly in the rural areas.
Ratan Tata chose West Bengal as he felt that it was a neglected state by the industrialists, who were hesitant to invest on account of the political climate there. In case, he needs to relocate the industry, although negotiations are still on, it could mean that he may have to raise the price of the car, as the costs incurred in relocation would prove to be extra expenditure for him.
The world,of course, is definitely waiting for the arrival of Nano, and in India it has become the talk of the town. Many who live on limited budgets now feel they can afford a car. Let us hope that Tata is able to keep up to his word!
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