Its Tata to Singur if protests dont stop in two weeks

  • 26/08/2008

  • Economic Times (New Delhi)

Nandini Sen Gupta NEW DELHI THE Tata Motors top management has reportedly indicated internally that the company will pull the plug on Singur if the situation does not improve in the next fortnight. Sources said even though the company can dismantle its Singur plant and install it somewhere else, it will lose Rs 100-200 crore on account of expenses incurred in laying the foundation, besides the inevitable delay in fullscale production of the Nano. Auto industry sources said the Nano launch may not be affected by the agitation in Singur because the first batch of 4,000-5,000 cars is reportedly ready at Tata Motors' Pantnagar and Pune plants. ET was the first to report that Pantnagar may be the alternative site option for the Nano in its edition dated November 29, 2007. When contacted, the Tata Motors spokesperson said: "We would not like to comment on speculation.' But even if the launch deadline is met, the overall rollout schedule will definitely be disrupted by the Singur fiasco. The mood in the company continues to be gloomy as the brass is upset over the turn of events as well as the personal attacks on chairman Ratan Tata. Sources in Singur said protesters have blocked all trucks from entering not just Singur but also Kolkata. As a result, parts and other supplies to the plant site have been seriously affected. Meanwhile, Tata Motors officials are tight-lipped about the future of the project. However, sources said the factory itself is a "ready-made construction that can be moved, though the plinth loss will be substantial'. The real challenge, should the project move out, would be to transfer the hydraulic presses and other bulky machinery. Sources also said one option could be to crank out the first couple of batches of the Nano from Pantnagar and Pune before the new site is up and running. ROLLOUT ON TRACK Nano launch may not be affected by the Singur agitation because the first batch of 4,000-5,000 cars is reportedly ready at Tata Motors' Pantnagar and Pune plants The real challenge, should the project move out, would be to transfer the hydraulic presses and other bulky machinery Tata Motors has received offers from a number of state governments, including Maharashtra, Orissa, Andhra Pradesh & Uttaranchal, for relocating the project