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Singur Impasse: Tata Motors hardens stance, West Bengal govt. backtracks on truce "deal"



By Surojit Chatterjee
11 September 2008 @ 8:01 am IST


Guards stand beside the main entrance of the Tata Motors plant in Singur
Guards stand beside the main entrance of the Tata Motors plant in Singur near Kolkata, West Bengal on September 8, 2008. Efforts to resume construction of a factory to build the world`s cheapest car were stuck, as India`s Tata Motors raised doubts over a deal to end violent protests at the plant. (AFP Photo)
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However, clearly unimpressed with the developments, Tata Motors said it was "distressed at the limited clarity on the outcome of the discussions." It was also aggrieved, the company said, as it was not invited to participate in the talks and its opinions were totally disregarded.

Under the given circumstances, "Tata Motors is obliged to continue the suspension of construction and commissioning work at the Nano plant," the company said in the statement.

The company said that the Nano project would not be viable unless some 60 key suppliers, which have invested over $100 million, are allowed to continue construction at the emerging auto hub.

"We will review our position only if we are satisfied that the viability of the project is not being impinged, the integral nature of the plant and ancillary units are being maintained and all stakeholders are committed to developing a long-term congenial environment for smooth operations of the plant in Singur," it said.

The state government, the company said, should not take any steps that would upset the government's commitments over the integrated nature of the Nano project in Singur as this could have a bearing on the interest of the company. "The government should not take any step which will disturb this arrangement (the integrated nature of the Nano project). We would like to be clearly told about any future arrangements, understandings or commitments that will go contrary to the agreement (between Tata Motors and the state government), and which will result in not honoring the commitments," it said.

According to a Tata Motors official, the company was doing everything possible to launch the Nano on time as planned, around October, the peak of the festival season in India and if the Singur protests continue, it would relocate elsewhere. The company, the official said, is upset with the fact that people with little or no knowledge of the synergies involved in the Nano project are taking definitive calls.

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