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 Protests drive car plant out of West Bengal

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Protests drive car plant out of West Bengal Vide
PostSubject: Protests drive car plant out of West Bengal   Protests drive car plant out of West Bengal Icon_minitimeSat Oct 04, 2008 11:33 pm
INDIA'S Tata Group has announced it is scrapping a plant in eastern India slated to turn out the world's cheapest car after weeks of violent protests by farmers whose land was seized.

The row over the Nano plant in Singur, on the outskirts of West Bengal state capital Kolkata, has emerged as a symbol of the clashing interests of India's small farmers and industry.

The announcement to relocate production of the Nano came after construction of the 90-per cent completed factory in the Marxist-ruled state was halted when protests made work impossible.

"You cannot run a plant when bombs are being thrown, you cannot run a plant when workers are being intimidated," Ratan Tata, chairman of one of India's oldest industrial houses, the Tata Group, said in Kolkata.

Farmers and activists led by Mamata Banerjee, head of the regional Trinamool Congress party, accused the state government of forcing farmers to give up their fertile land for a pittance.

"If someone had put the gun to my head I would not move away but I think Banerjee has pulled the trigger," Mr Tata said.

Trade lobbies said the problems that engulfed the Nano, due to be sold for 100,000 rupees ($2800), were a blow to efforts to woo foreign investment.

"Given the global turmoil, foreign investors could decide to go to safer destinations and not come here," said Dilip Chenoy, director general of the Society of Indian Automobile Manufacturers.

The state government had said it would be a "big loss" to industry-starved West Bengal if the Tatas pulled out of the desperately poor region.

Mr Tata conceived of the Nano as a way to make cars affordable for ordinary Indians.

http://business.smh.com.au/business/protests-drive-car-plant-out-of-west-bengal-20081004-4txd.html
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