Nano's pull-out unfortunate; to send wrong signal to investors

Written by:
Subscribe to Oneindia News

New Delhi, Oct 3 (UNI) Industrial bodies today termed the Nano episode as ''most unfortunate'' with curtains finally falling on the 'People's Car' roll-out from the company's mother plant in Singur after Tata Motors CMD Ratan Tata announced his decison to finally withdraw from the Communist-ruled state after protests failed to pacify.

The decision comes not only as a blackspot for the state but also for the entire auto industry as the 'nano' had already created a worldwide interest, a move which may send wrong signals to the investors community across the globe, the Indian Inc said.

'' It is not only a loss for the people of Singur, but for the entire state. We tried to extend all possible help to make this project successful, but it was a Tata Motors' decision,''said West Bengal Industry Minister, Nirupam Sen.

Mr Tata made the announcement after meeting state Chief Minister Buddhadeb Bhattacharjee in Kolkata.

''Taking all things into account, mainly the wellbeing of our employees, the safety of our contractors and in fact our vendors also, we've taken the very regretful decision to move the Nano project out of West Bengal,'' he said.

''The Tata project could have brought about a major change in the industrial scenario in Bengal,'' said Ficci, Secretary General, Amit Mitra adding that this was not a one off auto project but would have given a boost to a whole host of ancillaries as well.

The chamber noted that Bengal's tradition of engineering and heavy industry had suffered over time because of lack of fresh investments in these industries in the state and the gradual closure of many of the old engineering industries.

Industrial debacle continues for West Bengal as after Infosys, Satyam has also decide to also pull out of the state, while reality major DLF is said to be unhappy with the manner in which land is being acquired for its township project.

''The blame lies with a section of the polity and people of West Bengal will have to pay a very serious price for it,''said Secretary General, ASSOCHAM, D S Rawat.

''It is indeed regretful that the Tatas have had to pull out of Singur. CII feels that the Tatas have been very patient and this decision has come as a compulsion after the political dialogues failed to yield a consensus on the issue. The political consensus should have happened and such an iconic project should have come up in the state of West Bengal,'' said CII, Director General, Chandrajit Banerjee.

The Nano is expected to be priced at just above 100,000 rupees and has been billed as the world's cheapest, popularly known as the 'Lakhtakiya Car' in the hinterland.

Tata's had planned to make 2,50,000 cars at the Singur plant initially, increasing capacity to 350,000 units.

Work at the plant was nearly complete when farmers, backed by the state's main opposition party, stepped up protests, saying they were forced off their land without adequate compensation.


Please Wait while comments are loading...