"India's confidence in West Bengal is coming down. We are re-thinking and re-looking, as to what should be our future course of action in West Bengal. Our confidence has been shaken," said Mohandas Pai, Human Resource Director, Infosys.
Infosys had planned to invest Rs 250 crore and set up a development centre on the outskirts of Kolkata and provide employment to around 5,000 people. The recent events in Singur have shown that the weakness of the government to implement its policies, any acquisition of land has the potential of facing protests, Pai said.
"We are rethinking our decision to expand our business after Singur row. The dispute in Singur created fear in India Inc. We have seen political parties intimidating top businessmen, stop people from attending work, blocking national highway for days."
With the Tata Motors' rejection of the newly proposed Singur pact, Indian companies are voicing their opinion over the unfriendly situation in the state. Other than Infosys, Wipro is also planning to set up a development centre in West Bengal. Both the companies have plans of setting up IT Special Economic Zones(SEZs) with the land being provided by the government.
It is learnt that Tata Motors are most likely to move out its Nano project from Singur plant. The company maintains that it will not start work till it believes in the project's viability. Tata officials had earlier expressed the distress at the land-for-land agreement between the West Bengal government and Trinamool Congress. Tata Motors also lamented about their not being consulted during the talks between Bengal govt and Trinamool Congress supremo Mamata Banerjee regarding the return of 400 acres of land to farmers.