Tata NANO- WHERE WILL IT PARK FINALLY?

Tata Nano is not just the pride of Ratan Tata but is also the dream project of India, placing India on the global map as the new emerging small car hub of the world. It showed to the world that we have come a long way from the land of elephants, snakes and fakhirs and can do more than just develop IT softwares. And now, with the large cloud looming large over the Nano project, the eyes of the world now stay riveted, waiting to see what happens to the mega dream of this Nano.

Today, the Governor of West Bengal has started a campaign in the state, garnering support for the Nano and preventing it from moving out. Well, it may or may not work and one cannot help but wonder, why this was not started last week itself? Just as we cannot help but wonder why Mamata Banerjee allowed the project to come till this stage and then heightened her agitation?

Her comprise is that she wants the Tata project to move to the land opposite the present location, which is a marshy land but she alleges that it has been bought out by a big lobby of builders, who want to cash in on this boom in the region. So what is wrong in that, they got in at lower prices and were enterprising enough to recognize the opportunity? The land was acquired at rock bottom prices, which today tantamounts to being almost free. If a big, mega project comes up, there is bound to be overall development. What would Jamshedpur be without Tata Steel? Coming of a factory means employment, and development around the area generates more employment. Isn’t that betterment in the quality of life?

Yesterday, a farmer committed suicide as he got worried about his livelihood if Tata moves out. Doesn’t that mean that there are farmers who now depend on Tata Motors? And if Tata moves out now, what happens to the farmers, for whose rights Mamata is raising her voice, with an eye on the assembly elections? The farmers whose land have been acquired and factory has come up, what happens to them?

For Mamata Banerjee this Nano might be a political gamble but at stake are scores of lives, crores of rupees, reputation of the state and image of India on the world stage. If Tata moves out, indirectly, it will alleviate the image of the Left, which will be seen as a more progressive party, as it supported the project. Also, the current uncertainty in the nuclear deal has cast some aspersions on the integrity of the deal, which is what the Left has been fighting for.

West Bengal is amongst the least favoured states for investment and not surprisingly, is also amongst the least “industrialized” states in India, with very high unemployment. Its agricultural output has gone up substantial yet that is not enough to provide employment and progress. Tata Motors Nano project was set to change this entire perception and the general feeling was if Tata’s can put up shop there, why can’t we? The completion of this project would have marked a return of West Bengal into being the industrial hub it was in the earlier days. But this entire episode has blighted the reputation of the state all over again and people are now questioning what made Ratan Tata decide on West Bengal at all?

Mamata Banerjee fighting to retain the agricultural fabric of the state is fine but she also has to realise that there is a “brain drain” in her state as there are no employment opportunities. Tata’s Nano could have changed quite a lot for the state and its people but when politics, under the garb of “protecting the rights” permeates into industry, there is really no hope then.

Today, even the ancillary units have stated that they will move with the Tata’s; go wherever they go. For the cost structure of the Nano, which is its vital ingredient for success, it is imperative that the ancillary units stay close as it will bring down the costs. So their decision to move along with the company is good. Also a Plan B is being worked out by Ratan Tata, so maybe, we will know soon which way the Nano is headed.

For Ratan Tata, the inconvenience is about moving out but for West Bengal, the damage would be far reaching, which the coming generations would have to bear!
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