September 10, 2008

Bajaj does a flip-flop, now endorses Tata


KOLKATA: Pro-Mamata on Sunday. Pro-Tata on Monday. That's how Bajaj Auto chairman Rahul Bajaj reacted to the fast-paced developments on the Singur front.
A day after endorsing Mamata Banerjee's Singur agitation as a fight for farmers' rights, the straight-talking Bajaj on Monday appeared to back Tata Motors' contention that relocation of key vendors from the project site could affect the viability of an automobile venture. "It is a norm in the automobile industry that tier-I vendors should be as nearby as possible to the main unit for keeping freight, logistics and operational costs low," Bajaj told TOI from Pune. "In Bajaj Auto's own case, when we took land at Chakhan (Maharashtra) and Pantnagar (Uttarakhand), it included that (land) which would be used by our main suppliers," he added.
Incidentally, land allotted to Honda Siel Cars India Ltd for its new manufacturing facility in Rajasthan includes contiguous space earmarked for key vendors. Bajaj — whose two-wheelers may face competition from Tata Motors' Nano - dismissed speculation that he had a role to play in the Singur agitation. "I am fed up of hearing these things. Ratan (Tata) is a dear friend of mine. And anyone who knows me, is aware that I don't pay a dime to anybody. Why should I pay anything to Mamata?" he said.
However, Bajaj, a former CII president, said the Singur episode held out a message for land acquisitions being made for industry anywhere in India. "Industry should now learn the lesson that in future, irrespective of whether the land has been acquired by government, they should make sure that the original landowner had sold the plot willingly," he said.
Bajaj's views were echoed by another old hand in the automobile business, Wartsila India chairman Subodh Bhargava.
9 Sep 2008, 0150 hrs IST,
Sumali Moitra,
TIMES OF INDIA

Start operations in Singur, Bengal govt urges Tatas


KOLKATA- West Bengal government has asked Tata Motors to start operations at its small car manufacturing unit and reassured that no land would be taken out of the company's main plant in Singur or from areas earmarked for its ancillary units for giving to landlosers.
"We have assured the Tatas again that no land will be taken out of the project area and the state government wants Nano car to roll out from Singur," state Commerce and Industry Minister Nirupam Sen said in an interview to a private TV channel. To a question Sen said, the government had never agreed to the opposition Trinamool Congress's demand made during the bilateral talks at Raj Bhavan on Sunday that it should part with the Tata small car project land to the land losers. "We have agreed to explore the possibility of identifying and locating as much land available in the area for giving it to those affected by the land acquisition," he said adding there was a patch of land under the custody of West Bengal Industrial Development Corporation.
Expressing hope that opposition parties would appreciate the "gravity of the situation" if the Tatas pulled out of the project in view of the disruption, Sen said in the interview "I appeal to all to facilitate the Tatas to restart the operations at the Singur plant peacefully and smoothly." Responding to the anxiety expressed by the Tatas about the reported parting of land in the project area as claimed by the opposition after Sunday's talks, he exhorted the opposition not to campaign in a way which would prevent the Tatas from restarting work. Sen said the government has assured Tata Motors that land in the project would be kept intact and the company would have no difficulty in restarting work.
Asked about the possibility of Tata shifting to Pantnagar in Uttarakhand, the Minister said it would be 'utterly unfortunate' for West Bengal. "We strongly believe that congenial atmosphere will prevail in the Singur project area and the opposition will fully cooperate with the government and the Tatas in ensuring that the Nano car roll out from West Bengal becomes a reality." West Bengal government was doing its best to pave the way for restart of the plant operations, he said.
Sen's comments came in response to the concern expressed by Tata Motors Managing Director Ravi Kant about the opposition's claims that part of the project land would be taken as per the understanding reached at in Sunday's meeting chaired by Governor Gopal Krishna Gandhi. Kant had sought a clarification from the state government about the agreement.
The state government had yesterday said there would not be any change in the Tata Motors' Singur plant, nor any relocation of the vendors' park. "There will not be any change in the Tata project, nor any relocation of vendors' park," Sen had told reporters in the presence of Chief Minister Buddhadev Bhattacharjee at the state secretariat. Sen had said the Nano plant and vendor's park are an integrated project "and it is a very important issue".
TIMES OF INDIA
9 Sep 2008, 1405 hrs IST,PTI