September 19, 2008

WB Govt doing everything to settle Singur problem: Karat




Kolkata, September 18, 2008
First Published: 19:33 IST(18/9/2008)
Last Updated: 20:14 IST(18/9/2008)




The West Bengal CPI(M) on Thursday declined to comment on Karnataka's offer of 1,000 acres to the Tata Motors Nano car project, with party General Secretary Prakash Karat saying the state government has been making all efforts to resolve the Singur deadlock.


"The state government is doing everything to settle the issue. We will discuss on Friday what to do next," Karat, who discussed the issue with the party's leaders at the state party headquarters here, told reporters.


The party state secretariat would meet on Friday where the Singur stalemate might figure in discussions in presence of Chief Minister Buddhadeb Bhattacherjee and other party leaders including Left Front chairman Biman Bose.


Karat did not comment when asked what line of action would be taken by the government in view of the uncertainty over the Tata Motors project with the government and Opposition locking horns over the land issue.


He also declined comment when asked how long Tata Motors would continue with the supension of work at Singur.


Accompanied by Bose, Karat also met ailing veteran Marxist leader Jyoti Basu at his residence at Salt Lake before leaving for Delhi.


On the Karnataka offer to Tata Motors of 1,000 acres in case the company decided to relocate its Nano car project, Bose said, "I have only heard from you. Let me know for myself the matter in detail, only then will I comment. Let me see what kind of offer it is. Earlier, too, some states have made such offers to the Tatas." (PTI)

Interview with Industries Minister Nirupam Sen


Nirupam Sen: “We followed rules.We are now working on a rehabilitation package.”
By SUHRID SANKAR CHATTOPADHYAY

WITH Tata Motors suspending work at the Nano plant site in Singur and exploring alternative sites outside West Bengal, the prospect of an industrial revival in the State hang by a thread. In an exclusive interview with Frontline on September 3, State Industries Minister and Communist Party of India (Marxist) Polit Bureau member Nirupam Sen spoke at length on the importance of the project and why it is impossible for the State government to return the 400 acres [one acre is 0.4 hectare] of land to reluctant land-losers, as demanded by Trinamool Congress supremo Mamata Banerjee.

According to Sen, it is not a question of compensation alone but also one of including the poor people in the region in the industrial process.

Excerpts from the interview, which took place before the two sides held talks at Governor Gopalkrishna Gandhi’s initiative:

Q:What impact will a departure of Tata Motors’ Nano project have on West Bengal?

Nirupam Sen: It is bad news for West Bengal, but I still see a ray of hope. If we can resolve the issue amicably within a short space of time, we hope to be able to persuade Tata Motors to restart work at the plant site.

From the economic point of view, the automobile industry accelerates growth in the manufacturing sector by acting as a stimulant for the growth of small and medium enterprises manufacturing components. It is not just the small car mother plant that had come but also 55 component manufacturers. The number of people expected to get employment in these enterprises would have been more than double the number of people engaged in the mother plant.

Moreover, other component manufacturers were also showing interest in investing in the State; this, in turn, would have encouraged other automobile manufacturers also to come to the State.
This automobile plant is extremely important in India. Every international player has started looking at India as a destination to set up its unit. At present there are three automobile manufacturing centres in the country, in the north, the south and the west, and it was time for the east, and West Bengal had the opportunity to house this kind of a project, which would have accelerated growth, added to the revenue generation of the State government, and increased the employment potential in the State.

With the entire world looking on with interest at this project, the decision of the Tatas has tarnished the image of not only the State but the whole country. If a project of this kind cannot be implemented in the State, it will have an adverse impact on the minds of the potential investors as well.

Q:Was the State government expecting a decision like this?

Nirupam Sen: Well, Mr Tata was naturally concerned because nobody would want the factory to run under police protection. He had hoped that the people of the State would want a project like the small car factory and there would be a peaceful atmosphere in the workplace.

I can understand his point of view. Any investor would want that.

What is particularly disturbing is that those who are agitating in Singur had promised the State government that they would not indulge in violence, nor impede the activities in the factory. Unfortunately that was not the case. They stopped workers from going into the factory. They blocked the passage of some engineers who had come down from abroad to help in the work, and finally forced Tata Motors to suspend operations.

Q:Has the State government spoken to the Tatas to change their mind and give West Bengal one more chance?

Nirupam Sen: Not yet. Let us resolve the issue first. Attempts are on, and with the Honourable Governor, Gopalkrishna Gandhi, taking the initiative and talking with both the sides to settle the issue, we are hopeful of a positive result soon.

Q:Why is it not possible to return the 400 acres to the unwilling farmers, as demanded by Mamata Banerjee? Could the Tatas not have been persuaded?

Nirupam Sen: It’s not about persuading the Tatas; the question of returning land is a very complicated one. Initially, when the project was conceived, it was done in such a fashion that along with the mother plant, the vendors’ park would be an essential component and would be complementary to the mother plant. The Nano is an extremely price-sensitive car. Therefore, when the planning of the project was done, all the vendors’ and component manufacturers’ exact locations were also determined to the best advantage of the project. Accordingly, vendors were given land allotment. So, when the question arises to returning a portion of that land, it will be tantamount to abandonment of the project itself.

Secondly, even if it is agreed that the land may be returned, the question is whether it is possible to return the land acquired under the Land Acquisition Act to the erstwhile owners. In this case, the verdict of the Supreme Court has made it absolutely clear that this is not possible. The verdict states categorically that once land has been acquired under the Land Acquisition Act, it cannot be returned to the erstwhile owners.

Moreover, the Calcutta High Court has upheld the legality of the land acquisition proceedings in Singur and decided that the land acquired for the Tata project is an acquisition for a public purpose. Though the judgment has been challenged in the Supreme Court, until and unless the Supreme Court turns it down, the High Court verdict stands. But, going back to the main point, even legally, whichever government may be in power, it cannot return the land to its erstwhile owners.

There is another important aspect involved in this: of the total land-losers in the acquisition of 997 acres, those who have refused compensation are being called ‘unwilling land-losers’; there is no such term in the Land Acquisition Act. There is no provision in the Act to take into consideration who is willing and who is not. At the time of notification for land acquisition, farmers were allowed to express their points of view at the hearings; we have followed all the rules, never once deviating from the legal path.

But, for the sake of argument, let us take into consideration the ‘unwilling farmers’; the point now is, is their land in a contiguous area or on one side of the location? No. It is spread over the entire site, as the map I have given you clearly shows, and to return such land, as I have said, would mean abandoning the project.

Let us say, for the sake of argument, that we return the land to the unwilling farmer. In order to do that we have to give him access to his own land, and for that we have to take other land also. Is that feasible?

I’d like to make another point. So, we cannot return to the unwilling land-losers the land they held; but we can add up the total amount of land, and that amount we can give to them from a portion of the land in one corner of the site. In other words, we take the land of A, who has taken the compensation, and give it to B, who has refused compensation, taking into account the fact that after the construction of the factory the price of land has shot up.

Would that be morally justifiable? What answer will the government give to the man who gave his land willingly for compensation only to see it handed over to another who has defied the law, and particularly when the value of the land has increased so very much? If they (the ‘willing’ farmers) knew this is what would happen, they would not have agreed to part with their land in the first place. Such a thing would jeopardise the entire land acquisition process and set a precedent that would impact not only the State but the country as a whole.

Q:So what were the alternatives?


Nirupam Sen:
First, let us get one thing clear: what is the main issue here? It is whether the government is serious about protecting the economic interests of those who lose their land; whether they are being thrown out or being included in the process of development. In this particular case, the State government has all along been willing to consider all the proposals by which we can protect the interests of those land-losers – particularly the marginal farmers and sharecroppers. It can be through the provision of jobs and through other kinds of activities such as skill-upgradation programmes, and even providing help to set up some kind of business. If your interest is to protect the livelihood of the people in the region, then there is enough scope to do so; and I say they should have a better livelihood after this industrialisation.
Q:Did you consider hiking the compensation?

Nirupam Sen: First, the price given to farmers at the time of land acquisition was considerably higher than the market price at that time. The price of the best land there, just by the National Highway, was not more than Rs.2 lakh an acre then, but we gave much more than that. But it would be wrong to compare it with today’s price because after the Tatas started setting up their factory, the price has shot up.

Secondly, I don’t think merely compensation is enough. I believe there should also be a rehabilitation programme. Whatever be the compensation, it is important that an alternative means of livelihood also be provided; we have been working on that right from the day we started acquiring the land. Almost simultaneously, we issued an advertisement in newspapers inviting applications from employable members of the families of land-losers. More than 3,000 people responded, over 500 of them women and 500 agricultural labourers. They have been provided with different kinds of training; in fact, already more than 1,000 people of the area earn their livelihood from working in that particular plant. So, even before production, so many people have gained employment there.

Not only that, if you look at the local economy, it is evident how much it has grown since the construction work started at the plant site. Branches of banks have come up; recently in a fair organised in the region by Maruti, the company sold 20 cars in one day in Singur alone. A number of motorised rickshaw vans have replaced cycle rickshaws and handcarts; so many people are engaged in supplying different kinds of construction materials – sand, bricks, stone chips.

Self-help groups have emerged. While 40 women have been provided sewing machines, 25 women run a canteen. As many as 350 boys are being given advanced training so that they can be employed in the factory itself. So, you can see there is quite a huge growth in economic activities in the Singur area. All these activities have taken place at the initiative of the State government to rehabilitate the people of the region.

Even after all these efforts if it was brought to our notice that someone had been left out, we were committed to protecting their interests as well. Even if there was no one employable in a particular family for any number of reasons, and there was no other means for them to survive than through land, we were ready to provide relief and assistance to them. We are open to any new ideas.

Q:Is the State government coming up with any plan regarding its land acquisition policy to avoid such fiascos in the future?

Nirupam Sen: We are now working on a rehabilitation package. Wherever we want to acquire land we discuss with the local people and try to evolve a package. Every industry has its own specific nature, as does every area.
While we cannot compare one with another, there should be certain common features in the rehabilitation package offered. We are working on that. In fact, recently we had a workshop involving economists, social scientists and the chambers of commerce, where we exchanged views and ideas.
We are also continuously discussing among ourselves, with our Left Front partners. We will come out with a publication once we arrive at a comprehensive consensus.

Jyoti Basu appeals to Singur land-losers to accept package

KOLKATA: Veteran Marxist leader Jyoti Basu on Friday appealed to Singur agitators to accept the compensation package prepared by the West Bengal government for the land-losers and allow resumption of work for the Tata Motors small car project.
"To enable the small car project to materialise, the state government recently announced a compensation package for the farmers who have given land. I appeal to all concerned to accept the package and allow the project to come up," Basu said in a statement from his Salt Lake residence after meeting party state secretary Biman Bose.
"I also appeal to those who are opposing the project to rise above politics and cooperate with the state government in allowing the project to come up in the interest of the people of the state," Basu said. The CPI(M) patriarch, who returned home on Tuesday after spending nine days at hospital following a head injury, could not attend the party state secretariat meeting earlier in the day at the party office. He was briefed about the meeting by Bose.
Describing the Tata Motors small car project as "very important" for development of the state, he said once the project came up, it would increase employment opportunities and bring about economic development. It would also attract more investments to the state. "The development of the state should be the desire of everybody irrespective of political affiliation," Basu said.
19 Sep, 2008, 1600 hrs IST, PTI

CPI(M) concerned over Singur impasse

Agencies
Posted online: Sep 19, 2008 at 1706 hrs

Kolkata, September 19:
The CPI-M on Friday expressed concern at the Singur impasse, saying those opposing the Tata Motors small car plant should realise that the people of West Bengal wanted the project to come up there.

“We are concerned. The people of the state should know who are against development,” CPI-M state secretary Biman Bose told newsmen after the party’s state secretariat meeting.

Referring to the ‘pro-Nano’ rally organised by CPI-M-led Left Front at Singur on September 15, Bose said the massive turnout on the day indicates that people of West Bengal wanted the Tata Motors plant to come up there.

“Our Bardhaman district committee secretary Amar Halder was leading a big procession to the rally, but it was stranded on the Durgapur Expressway owing to the massive turnout of people. Such an enormous crowd would not have been possible if people did not want the plant at Singur,” Bose said.

Asked to comment on the Karnataka government’s offer of land to Tata Motors for relocating the small car plant, he said, “It is not impractical. Those who want to set up industry can decide where they will look for land.”

Taking a dig at the Trinamool Congress leading the anti-land acquisition agitation at Singur, Bose said, “The people of the state should think and decide what is to be done about those who do not want the state to prosper.”

Tata offered alternative site for Nano plant

India's Tata Motors offered new site for Nano car plant

AFP, 18th September,2008,1 hour ago(9-40pm)

MUMBAI (AFP) — Tata Motors said Thursday it has been offered another site in India for its factory to mass produce the world's cheapest car after protests over land dogged another location.

Company officials met with the chief minister of the southern hi-tech state of Karnataka and were offered 1,000 acres (400 hectares) "with all facilities" to manufacture the Nano, a Tata official told AFP.

"We are obviously happy," the Tata spokesperson said, but added no decision had been made on whether the auto giant would abandon its nearly-completed plant in West Bengal state.

Tata has poured 350 million dollars into the West Bengal plant, but it cannot complete the project and begin production due to violent protests by the state opposition party and farmers who say their land was stolen.

Efforts to resolve the stand-off have so far failed, with protesters rejecting a government rehabilitation package and an offer to return some of the land.

The Tata official said 13 other Indian states were also offering land for the factory.

Tata Motors had said it hoped to launch the Nano in October in time for the big-spending Hindu festival season. The company wants to sell the car for 100,000 rupees (2,150 dollars).

Shifting the plant would delay any mass rollout for months.



India's Tata says state offers home for cheap car

Thu Sep 18, 2008 5:35am EDT, REUTERS
(Adds quotes)
By Tamajit Pain

KOLKATA, India, Sept 18 (Reuters) - India's Tata Motors said on Thursday the southern state of Karnataka had offered land for a production plant for its cheap Nano car after the firm suspended work in West Bengal due to violent protests.

The company planned to roll out the 100,000-rupee ($2,380) Nano from communist-run West Bengal from October, but farmers angry over losing their land and supported by opposition politicians forced work to be halted.

"Karnataka has offered 1,000 acres (400 ha) of land and incentives for setting up the Nano plant in the state," a Tata Motors spokeswoman said after Ravi Kant, the firm's managing director, had met the state's chief minister.

Kant later told TV channels the company was considering its options on moving the plant out of Singur, an hour's drive from West Bengal capital Kolkata.

"In case we were thinking of relocating the plant from Singur he (chief minister) would give all necessary support and assistance and incentives to make it happen.

"We are watching the situation and actively looking at alternatives."

Karnataka Chief Minister B.S. Yediyurappa told reporters he was hopeful the Nano factory would be relocated to his state.

Tata Motors had said it would look for alternative locations for a plant for the Nano, dubbed the world's cheapest car, after calling a halt to work in West Bengal.

Farmers in Singur, where Tata Motors was building its factory, say they were forced off their land without adequate compensation.Some said their consent was not sought and land was seized by authorities.

They want their land returned and have been backed by the local Trinamool Congress party, which has been spearheading the protests.

But Tata Motors and state government officials said land where the factory was being set up could not be handed back to the farmers, and instead offered to raise the compensation by 50 percent.

The Trinamool Congress rejected the offer, threatening more protests.

The dispute reflects a larger standoff between industry in India and farmers unwilling to part with land in a country where two-thirds of the billion-plus population depend on agriculture.

(Writing by Bappa Majumdar; Editing by Mark Williams and Sanjeev Miglani)


Karnataka offers 1,000 acres for Nano plant

Indo-Asian News Service, September 18, 2008

The Karnataka government on Thursday offered 1,000 acres of land to Tatas if they plan to shift the Nano car project from troubled Singur in West Bengal.

Chief Minister BS Yeddyurappa told Tata Motors managing director G Ravi Kant that the goverment would also provide several other facilities for the small car project.

"We have offered the Tatas 1,000 acres and promised other facilities," Yeddyurappa told reporters after his meeting with Kant.

The land will be offered in the north Karnataka district of Dharwad where Tatas have an equipment manufacturing facility.

Kant said: "We have not taken any decision (on relocating from Singur). We will consult our chairman Ratan Tata."

Tata Motors have suspended operations at its Singur factory since September 2 apprehending danger to its employees after Trinamool Congress-led protests against alleged "forcible" acquisition of farmland for the project.

Now, wholesale giant rethinks Bengal plan

KOLKATA: After Tata Motors, is Metro Cash & Carry also having a rethink on its investment in the city? Speculation on this front was stoked on Thursday following a spokesman of the German wholesale giant stating that the company is “currently evaluating all options,” including whether it should go ahead with its Bengal plans following its continued inability to obtain a fresh APMC licence to sell agricultural produce.
Unlike Reliance Retail which managed to circumvent the APMC (Agricultural Produce Marketing Committee) problem in the state by choosing not to sell agricultural items on its own at its recently opened stores here, Metro Cash & Carry does not enjoy the same luxury as a large component of its income comes from selling agricultural produce to hotels and restaurants. In a carefully worded statement, though, Metro Cash & Carry said that “in spite of unforeseen difficulties,” it had invested Rs 140 crore on its distribution centre in Kolkata and recruited and trained over 350 employees for this facility on the invitation of the state government to establish a presence here. “This (investment) was done with an agreed pre-requisite that in order to provide to farmers and small traders the desired benefits, Metro Cash & Carry would require the license to deal in agri commodities.
In line with this, the state government granted a license to trade in APMC commodities in 2005 which was subsequently renewed twice in 2006 and 2007 and was to be valid till March 2008,” the statement said. “In June 2007, the said license was unilaterally withdrawn by the APMC authorities. The company filed for issuance of fresh APMC licence in March 2008 and is still awaiting the same,” the statement added. Agriculture Marketing Board chief Naren Chatterjee, whose organisation issues APMC licences, however, refused to comment on the issue. Chatterjee, who belongs to the Forward Bloc party, has been at the forefront in resisting the entry of big corporates in retail of agricultural commodities.
Earlier during the day, Sunderbans development minister Kanti Ganguly met agriculture minister and Forward Bloc leader Naren De at Writers’ Buildings to urge him to renew the APMC licence earlier granted to Metro Cash & Carry. De, who discussed the issue with the chief minister on Thursday, said Metro officials had met him a few days ago. “Since I don’t know about the details, I said I will find out,” De said. Ganguly said the project should come up because it involves many jobs.
19 Sep 2008, 0459 hrs IST,TNN

Nano effect: US team cancels city visit


KOLKATA: In a major blow to Bengal’s overseas image, an influential US-India Business Council (USIBC) delegation has cancelled its two-day visit to Kolkata because of the Singur controversy. The visit was scheduled to begin on September 21. The Washington-based council — which represents some of the biggest US enterprises — conveyed its decision to the Kolkata chapter of Amcham India on Thursday.
About 15 rooms booked for USIBC delegates at a leading deluxe hotel in central Kolkata have already been cancelled. “Due to concerns expressed by USIBC member-companies relating to the political dimension (that) these protests have taken, the Kolkata leg of the USIBC executive mission stands cancelled,” USIBC president Ron Somers wrote in an email to Amcham Kolkata chapter chairman Gulshan Sachdev. “It is, indeed, unfortunate that Bengal’s political situation has worsened such that the flagship Tata Nano project is not only unable to operate but is presently under siege. My deep regret is that the young people of Bengal, who so badly want and need employment, are the losers in the political tug of war unfolding at Singur,” Somers added.
The USIBC president further said that the chamber could consider visiting Kolkata only if “order is restored to the satisfaction of the esteemed Tata Group of companies”. “USIBC can reconsider a mission to West Bengal, which is the gateway to the East beckoning great possibilities, but must first sustain an environment supportive of business,” he added. USIBC had previously decided to send its team led by Cargill president (Asia) Paul Conway.
Apart from interacting with local businessmen, the delegates would have interacted with chief minister Buddhadeb Bhattacharjee. Industry observers, however, did not express surprise at the cancellation saying that it was on expected lines as USIBC had been hesitant about coming to Kolkata ever since problems started at the Nano plant on August 24 forcing the Tatas to suspend work at the Singur factory. “We would have been pleasantly surprised had the USIBC trip to Kolkata gone through,” another industry source said. Indications of a possible cancellation of the Kolkata leg of the USIBC delegation’s India trip had been given by Somers on September 2 itself (the day Tata Motors announced that it was suspending work at Singur). In an e-mail to TOI, Somers had then said: “If Ratan Tata cannot succeed in West Bengal, then how can an American investor hope to succeed there? Suspension of work at Singur is a tragic setback — for the Tata Group, for West Bengal, and for the thousands of lost downstream jobs such an industry will create.”
The USIBC team’s visit to Kolkata in September had assumed significance since it would have been the first by a high-profile overseas business delegation since the Left withdrew support to the Manmohan Singh government. This trip was earlier supposed to be held in March. The USIBC delegates, however, would be visiting Hyderabad and Delhi as per the original “three-city mission to India” lined up for September 21-25 to explore opportunities in agriculture, retail, real estate and supply chain management. Meanwhile, the US consulate in Kolkata claimed that the cancellation of the USIBC trip was caused by time-pressure.

19 Sep 2008, 0505 hrs IST, Sumali Moitra,TNN