Tata group not to leave West Bengal, says Cyrus Mistry

KOLKATA: Chairman of Tata Sons Cyrus Mistry today said that the group has no intention to leave West Bengal.

"Tatas have never left West Bengal. We will never leave West Bengal as a group," Mistry told shareholders at the AGM of Tata Global Beverages.

Mistry, who chaired the meeting for the first time after becoming the Chairman of Tata Sons last year, succeeding Ratan Tata, declined to make any comment on the Supreme Court's recent observations on Singur.

"The matter is sub-judice and we do not want to discuss at this stage," Mistry told reporters after the meeting.

The apex court had said that the Tata Motors should make its stand clear on its leasehold rights over the Singur land in the wake of the changed scenario as the company had already moved its Nano car plant out of West Bengal to Gujarat.

Tata group not to leave West Bengal, says Cyrus Mistry

We regret not being able to do what we wanted to do, says Ratan Tata

By Indrani Dutta

Kolkata: West Bengal is very much a part of the Tata group's identity, said Tata Sons chairman Ratan Tata on Monday, regretting that it could not do what it wanted to do in the State.

Mr. Tata was in the State on the occasion of the annual general meeting of the group company Tata Global Beverages (formerly Tata Tea). In response to a query whether the Tata group was planning to leave the city, he said: “We have not exited Calcutta. Our visits may be less. But we have a very warm feeling for this part of the country.”

The Cancer Centre which is coming up at New Town in Rajarhat in East Kolkata is likely to be dedicated to the people this year. “We hope it will save many lives,” he said.

He scotched rumours that investment in the State was being curtailed: “We have not changed our views in terms of investments. In fact we have increased our investment in the hospital and I hope that before the hospital comes up, those elements in Calcutta that may feel alien towards us will understand that we are still very much Indian and West Bengal is very much a part of our total corporate identity.”

Mr. Tata had a 45-minute session with West Bengal Governor M. K. Narayanan at Raj Bhavan. He also visited the Cancer Centre.

After the Tata Tea AGM in 2009 he had addressed a hurriedly convened joint press meet with State Industry Minister Nirupam Sen to reiterate that all other group investments were on track. The shareholders' fresh apprehension stems from the fact that the erstwhile Tata Tea has shifted its operational base to Bangalore. “We started in Calcutta, our head office remains in Calcutta.” he said.

Asked why the company was continuing with its listing at the Calcutta Stock Exchange, he said: “It is a respect for our roots. Our presence in the Calcutta Stock Exchange is a mark of respect to the place where we began. We do notice that there is little or no transaction but that listing we will keep.”

Since the announcement of relocation of the Nano project to Gujarat in 2008 following violent protests led by Trinamool Congress over land acquisition, the Tata Sons chief has had to reassure the State's people time and again about the group's abiding interest in West Bengal as an investment destination.

Tata's open letter to west bengal people through huge ads

Kolkata, Oct 17 (IANS): A fortnight after pulling out the Nano plant from Singur, Tata Group chairman Ratan Tata Friday asked the people of West Bengal to support either the Buddhadeb Bhattacharjee-led government 'to build a prosperous state' or suffer the 'destructive political environment of confrontation' that he id was being espoused by Mamata Banerjee's Trinamool Congress.

In an act unusual for an industrialist, Tata made sharp, politically-explosive comments eulogising the state government and running down Banerjee's Trinamool Congress, the main opposition party in the state, through huge advertisements in several dailies here.

In the advertisement, headlined 'Open Letter to the citizens of West Bengal', Tata urged the people, particularly the younger citizens, to express their views and aspirations as to what they would like to see the state become in the years ahead.

'Would they like to support the present government of Mr. Buddhadeb Bhattacharjee to build a prosperous state with the rule of law, modern infrastructure and industrial growth, supporting a harmonious investment in the agricultural sector to give the people of the state a better life?

'Or would they like to see the state consumed by a destructive political environment of confrontation, agitation, violence and lawlessness? Do they want education and jobs in the industrial and high-tech sectors or does the future generation see their future prosperity achieved on a 'stay as we are' basis?'

Then he went on to fire the salvo that had Kolkata talking Friday morning: 'The confrontative actions by the Trinamool Congress led by Ms. Mamata Banerjee and supported by vested interests and certain political parties opposing the acquisition of land by the state government have caused serious disruption to the progress of the Nano plant.'

Tata said his company had two years ago decided to bring out Nano from Singur as it had 'tremendous faith and confidence' in the state government.

'It reflected the tremendous faith and confidence we had, and still have, in the investor-friendly policies of Mr Buddhadeb Bhattacharjee's government. All through the two years that we have been constructing the plant at Singur, this feeling of faith and confidence in the vision and objectives of the state government has been reinforced.

Slamming the Trinamool for leading a farmers' agitation which forced Tata Motors to shift the Singur project Oct 3, Tata said the protests had the backing of 'vested interests'.

Tata recalled that the state was a major centre for heavy industry and steel fabrication in the past, but agitation and violence drove away many industries around 30 years ago.

'History appears to be repeating itself. Agitation, violence and terror are overtaking the state in the name of the agricultural community, to serve political goals - stalling progress and destroying the new-found confidence in the state, while doing nothing for the rural poor, other than making promises,' he said.

Detailing the reasons for withdrawing from Singur, Tata said the company had to endure constant acts of open aggression on the site, occasional acts of violence, breaking of compound perimeter walls, and theft of construction material from within the project area.

He squarely blamed the Trinamool for the breakdown of talks with the government to resolve the Singur impasse, saying: 'Various attempts at finding a solution were thwarted by the Trinamool Congress' consistent demand that land acquired for the Nano plant and/or its integrated vendor park be returned to the segment of the land owners which the Trinamool Congress party claims to represent.'


He also referred to the 'intimidation and even physical assault of employees, contract labour and residents of the area to be absorbed in the project. Country bombs have been lobbed into the premises, obstructing the movement of material and personnel into and out of the plant'.

Tata said that the project had been conceived as an integrated campus of manufacturing facilities and suppliers, so as to maximise integration and minimise logistics and material flow costs.

'Disruption of this integrated campus would make it extremely difficult for the company to meet its product price and productivity goals,' the advertisement said.

Tata said he was compelled to write the open letter following statements by vested interests criticising the decision taken by Tata Motors to move out of Singur and claiming that it was hasty and politically motivated.

'I therefore feel compelled to address the people of West Bengal, to explain how our dream of contributing to the industrial revival of the state has been shattered by an environment of politically-motivated agitation and hostility that finally left us with no option but to withdraw,' he said.

Tata said his appeal Aug 22 for a more congenial environment only led to an escalation of hostilities through a dharna (sit-in led by Banerjee) on the highway in front of the plant.

'All of you will therefore appreciate that the final and painful decision to move the project out of West Bengal has not been a decision taken in haste, but a decision taken with great regret after a great deal of deliberation,' he said.

'We believe the responsibility for this would lie with the Trinamool Congress, which has created the hostile environment that had obliged the company to move the project form Singur,' Tata said.

Since its inception in May 2006, the project to roll out the Rs.100,000 ($2,250) car encountered strong resistance from the Trinamool-led farmers demanding return of a portion of the acquired land 'forcibly taken' from owners unwilling to part with their land.

Tata Motors has since relocated the plant to Sanand in Gujarat.

Bengal not a closed chapter: Ratan Tata

8 Oct 2008, 0700 hrs IST,

Arindam Sen Gupta & Bharat Desai,TNN

Tata Group chairman Ratan Tata had just flown into Ahmedabad from Mumbai and checked into his hotel. He looked like a man wanting to put behind a troubled past as he strode in with a sense of new purpose. Minutes after he had settled in, he called TOI for this interview. And broke the news an hour before the formal announcement — his dream project, Nano, will take shape in Gujarat.

Excerpts:

TOI: It must be a relief for you that you have finally found a place for your plant.

Tata: It is not a sense of relief but satisfaction — that it is all settled, that we are not orphans looking for a home. I think it's a continuing process. We left one place and have come to another. But we will look forward to the new location with a great deal of enthusiasm because, hopefully, we will have an environment where we can do what we set out to do, which is, not just manufacture a car but be a good corporate citizen in the process.

TOI: Far from your project being an orphan without a home, states were falling over each other to offer you great villas. What was special about Gujarat's offer? What clinched it for the state?

Tata: I think what made a difference was the fact that Gujarat has been able to define the land and give us the possession. Land is the main thing that takes much time. Gujarat has done it in an unbelievably fast manner and given all approvals and permissions with great speed. You know if it were possible to transport or move the plant in a day we could have been in business the next day at this location in Gujarat. But we are not dealing with something that can be moved in a day.

TOI: How long it has taken to seal the deal? Tata: I was not directly involved in the process. We will have to ask Ravi Kant (Tata Motors MD).

Ravi Kant: It took a few days.

TOI: What would a few days mean?

Ravi Kant: I would say about 10 days.

TOI: When did you finally decide that it would be Gujarat?

Tata: We finally decided last night. Let me say the entire process started when problems started growing in Singur. We had offer letters from many CMs who knew that we had problems in West Bengal. As soon as we made the announcement, I guess it was on August 22 when I made the announcement that we would move if the situation did not improve, we had letters from four or five states and we responded to each of the letters. I think most of us were travelling at that time. When we came back, we started picking up the letters and actually talking to the states about land — land being the main issue. And so I think probably some time in September, we started looking at land, studying what these states had to offer etc. Indeed, we had to look for an insurance policy. It was not an emergency from our side until it came very close to saying we were going to move from Singur. And then it became very urgent to settle something else fast. Ravi has been running around from one state to another. It was important that one team travelled from one state to another so that they can compare. The chief minister of Gujarat moved very fast. Gujarat enjoys the reputation of being an investor-friendly state. So we decided this was really the place where we have everything in order. With all other states, despite all their good intentions, there were many things yet to be settled. So we decided to move forward with Gujarat and everything was put in proper place.

TOI: Will the Sanand plant be the mother plant?

Tata: Yes, this is the mother plant.

TOI: At the last Vibrant Gujarat summit in 2007, you said "You are stupid if you are not in Gujarat". What took you so long to come here?

Tata: We were in Gujarat even at that time as we have Tata Chemicals here. But we didn't talk of this project at that time, although I think Mr Modi told me jokingly, "You are having trouble there. You come here and I will give you everything." Now, we are here, as luck would have it.

TOI: Will you be able to deliver the Nano on time despite the Singur setback? Will the initial production of the car come from your plants at Pune and Pantnagar?

Tata: Yes. We already have a makeshift operation in place. It is important to tell the world that in spite of all that has happened we will bring out the Nano within the same window (the last quarter of this year).

TOI: What made you go to West Bengal in the first place? Buddhadeb Bhattacharjee?

Tata: Did you say Mamata? (Laughs) Yes, it was Mr Buddhadeb Bhattacharjee. I have known him literally from the day he took over as chief minister from Jyoti Basu. We were at that time with the Haldia Petrochemicals Complex and because we had a problem, not with the state government, but with Purnendu Sen, we withdrew. At that time, I met Mr Bhattacharjee and was extremely impressed with his sincerity. And that sincerity has been there throughout. He told me that I should not withdraw and I told him we must but we would come back with a bigger investment to West Bengal because I believe he was doing the right thing. Then one day when we were inaugurating the cancer hospital in Kolkata he said why don't you bring your automotive project to West Bengal. I told him the incentives you have will not match with what other states are offering. And both he and Nirupam Sen (industry minister) set themselves the task of meeting what was needed. To be honest, he first offered us land at Kharagpur. But then that was far from Kolkata. I told him that if we wanted the project to be showcased to the world as a world-class enterprise, we should have it at a location where we could bring in our best people, give them the best schools, best colleges etc. In deference to my wish, he showed several plots out of which we found Singur most suitable. Unfortunately, what followed was something unexpected while we had something wonderful going. It would have brought investments to a part of a country which has been neglected. It was a forerunner of future investments in that part of the country.

TOI: What is the loss to the Nano project because of time overrun?

Tata: First of all, all the equipment will come good. So there is no loss on equipment. One may ask what have you left behind and how much of it is totally wasted. You can retrieve a fair amount of the fixed assets that you may have and relocate it. It is our view that in terms of the current year we will not have to reflect any appreciable loss in our books. We have also not discussed with the state government what we would do with the land because its still leased to us. The state government wants us to look at other projects, which we have agreed to do. We just said that we will do it if the environment is conducive, otherwise we will not. So it's not that we have walked out of West Bengal and left a crater or a barren piece of land behind.

TOI: Gujarat has not been known to offer special incentives to industry. What was your experience?

Tata: I think as far as we are concerned whatever we needed and were getting in West Bengal, it has been matched here. We are very pleased with the package and the speed with which, more than anything else, the package has been finalized.

TOI: You are embarking on this project at a time when there is a global economic downturn. There is a liquidity crunch in the country too. What is your outlook regarding the global slowdown? How long do you think it will last?

Tata: The global slowdown is affecting ... . It is percolating like a coffee machine down to industries that were not directly involved in the crisis. We ourselves here are facing a downtrend because of a tightness of credit. If it opens up, as there are some signs of doing, I think we will see some recovery. But the US and Europe are still reeling under writeoffs and writedowns and defaults, which is creating a kind of domino effect in other industries. And nobody seems to know where or when it will bottom out.

TOI: Would you have an assessment of how long the slowdown might continue in India?

Tata: No, I am not any more qualified than some others, although I think nobody knows how long it would be to bottom out.

TOI: From Bengal to Gujarat, it's the same country and two very different stories. What lessons do you draw as a senior business leader?

Tata: I don't know how much problem that we faced was really that of the famers. I would just say that political opposition and political aspiration should always be subordinated to the better welfare of the country or the state. I don't know who would be the losers. You have talked about ourselves being one of the losers in the sense of losses owing to time overruns. But I wonder what we have left behind. I am sure West Bengal can attract other investments and will attract other investments and we will be as supportive as we can in attracting new investments. But what about the people who had aspirations for jobs? The people who have made this issue of land-for-land — will they prosper? Has anything been done to increase their yeilds, their income levels? Many of them are below subsistence levels — they say so themselves. On the one hand, they talk of drinking their money away or not having money, and on the other hand, they talk of having their land back. I mean are we doing anything to improve their lot? These are the questions that come to my mind. So, political opposition should hold the country first and not themselves. That's all I am saying.

TOI: Mr Tata, thank you.

MR. RATAN TATA ON SINGUR MOTOR CAR PROJECT

Question – Mamata Banerjee’s has been demanding to return the 400 acres of land, what is the reaction of Tata group.

Mr. Tata - We believe, yesterday I voiced our concern on various developments in Singur, if I have to give a slightly long reply, perhaps Ican answer some of the issues you have. We came to West Bengal at a time when many people considered us to be mad. There had been very little development in West Bengal, there had been very little investment. And Tata Motors decided they would locate one of their prime and most unique factories in West Bengal. Everybody had great apprehension about us making this investment in West Bengal. But this part of the country has always been ignored industrially for many years and we thought that it should not be ignored. This part of the country has to play and has always played a major role and as you know it was the centre of heavy engineering in the past, but it has disappeared from the industrial scene. So we decided to locate the small car factory in Calcutta. And mostly wanted and hoped for setting up to showcase the new industrialization of West Bengal. We leased property that was offered to us that had already been acquired. And as we were looking at a unique product at a very low cost we wanted it to be a consolidated car company with its ancillary suppliers incorporated in the same location, because logistic & transport cost are a major part of the component cost of any plant. We are trying to produce the car that has never been tried anywhere in world and at that kind of price. It will be a tribute to the young engineers if we achieve that. What has concerned us is the violence; the destructions have let us to be concerned about the safety of our employees, the safety of our equipments and investments and in fact of the viability of the process as such. We do not want to come to an area where we perceive that we are unwanted. We have not come here to exploit any segment, we are deeply concerned about the people of West Bengal, if, in fact,anybody has a history of dealing with serving the people of around their plants, I think we have displayed that kind of sensitivity. And we are deeply concerned about the people of West Bengal and the people around the areas where we have located our plants. There the people of West Bengal & Calcutta to decide whether we are going to be an unwanted resident or a good corporate citizen of West Bengal, and if it is the latter we will be very very happy to be part of this development. If on the other hand, if there is a view that for various political reasons, we should not be here or what weare trying to do should be altered, which cannot be.., then we would necessarily face an issue, very reluctantly, where we need to move. If anybody is under the impression that because we have made this large investment of about Rs. 1500 crores, we will not move, then they arewrong.. it is not a hypocritical investment. Because we would move whatever the cost to protect our people. I can’t bring our managers and the families to West Bengal, if they’re going to be beaten, if there is going to be violence constantly, if their children are going to be afraid to go to school, and surely that is not what West Bengal is. West Bengal is a highly intelligent, literate state. I think they have tremendous potential. The people of West Bengal, either in agriculture or industry, I think have a rightful place in the prosperity of India. And our hope would be that we can help bring this prosperity to the state. But if the state, for any reason, any segment of the state feel that we are exploiting them, first of all it is totally untrue, but if that is the feeling, we will exit. So, that has been my concern.

Question: You have already answered the questions I was going to raise, but what exactly is your anxiety? - the violence that is starting from 24th onwards or worse and finally do you.

Mr. Tata: My concern is no specific issue other than the fact that if there’s a sense of tension and violence and disruption, obviously that is not a conducive environment. I have to applaud all the people who have been working at the site; they are working under tremendous tension. Our compound walls have been broken, people have been coming in, and materials are being stolen. We can’t open and operate a plant with police protection, if that is the way it is to be before we start, you can well imagine our concern what will happen if we try to operate. If statements are made that no cars will be allowed to go out of the plant. May be we have no way to consider that we could be here. I have to say that the people on contract and our own people are working in tremendous tension. So, I do believe that these are the kinds of concern that we have.

Question: Do you regret coming to Bengal?

Mr. Tata: No, I am an optimist. And I am an Indian first and I believe West Bengal is very much a part of India. I have, unknown to most of you, lived in Jamshedpur for 6 years. I know West Bengal well; I have spent a lot of time in West Bengal. I have always had a very soft corner for West Bengal which is what led me to take this decision. The last thing I want is, or a feeling that Tata’s are unwanted, for what ever reason, in West Bengal. Because under those circumstances we could just revert back to the situation, Tata’s did not invest in any major way in West Bengal in many years. This is our token. Yes, we donated a hospital which will be operational in March or April. That has nothing to do with the industrial decision we make. But what we have looked at is that all our company is looking at West Bengal, be it in power, be it in metalics, be it in coking coal that we looked at West Bengal as a place for industrialization. At the same time we are extremely sensitive to the rural community and I think Tata’s more then anyone else are sensitive to the need for rural community to haveupliftment and although with the rest of India we have been in advance in water conservation projects, increasing the yields of agriculture, just we’ll do the same thing here. I don’t think that our involvement in West Bengal starts and stops with our investment in an industrial location. We have and always will be sensitive to the needs of the agricultural community and rural community because they are infact the majority of India. In this particular case all I can say that we leased land which was offered to us,which we believe and have no reason to disbelieve were acquired legally.

Question – Some people is saying that Singur deal is lacking transparency.What is your take and do you believe that by not making the deal public, State Government is adding fuel to further tension.

Mr. Tata - See, I don’t believe that there is a lack of transparency and I don’t wish to comment on what the government is doing or not doing. I believe for example that how we build cars, is our business, how the government operates, is their business and I think that our experience in this whole transaction has in the best of my knowledge been very transparent.

Question – In this juncture are you confident to roll out Nano in Octoberfrom Singur?

Mr. Tata - See, we are in a position to roll out Nano in October or close to October, but it seems that many people have desired not to see that happen. So, it’s very easy for people to block that from happening, but our desire is to see it take place and it can take place.

Question – Sir, you just mentioned that if such kind of violence continues,then you are going to move, this is what I understood you just mentioned,have you set some kind of a deadline, some kind of a situation where if such violence continues till this period of time I am going to move out from there?

Mr. Tata - No, please understand, I am making a very genuine statement. Idon’t have a motive, I don’t have a plan that I am working to, I have made a major investment here, to move would be a great cost to the company, and great cost to the Tata Motors shareholders, I think it is also going to be a great cost to West Bengal because I don’t know, because I don’t know how many Rs. 1500 crores investments would come to West Bengal. All that is happening in terms of violence and disruption is seeing a lot of visibility on television not only in West Bengal in India and soon beyond India. I hope if this untoward issue has to take place then West Bengal doesn’t get characterized as the trouble spot in India. It does not fall into the same category as some other trouble spots in India, where there is an urge to leave it alone and not to take the risk of investment because today what are we looking at, even for us the risk of having taken that investment. There is no time frame but there is a concern for our people, there is a definite concern of not being where we are not wanted, definite concern where people who are suspicious of our motive. And there’s a definite concern…about the…what should I say…where people are suspicious of our motive…because nothing could be far from the truth.

Question - Is there any plan B?

Mr. Tata - There is no plan B at this time.

Question - Will you accept any alternative plan just to save the project?

Mr. Tata-I have already explained to you that the vendors have already…let me just address that. The vendors have made as much of a leap of faith in West Bengal as we have. Without the vendors having come there and been willing to locate themselves adjacent to us and to be a part of our plan, there may not have been a Nano plant in Calcutta, because the components would have had to come from other parts of India. The component manufacturers have therefore made as much a leap of faith. They in fact will employ large amounts ofpeople and in fact following them more investments will follow in the terms of Tier 2 and Tier 3 suppliers. I would just like to raise something that I think I missed. As I see West Bengal what do I see in the years ahead? As things that West Bengal can aspire to. More jobs, higher education and the people of West Bengal sharing in the prosperity that has been there in other parts of India which I believe West Bengal have not shared in. There has to be a balance too that the rural community must prosper and West Bengal must be industrialized Somewhere that balance must be found. It’s been found in other parts of India and it must be found here. I don’t think industrialization can take place without being sensitive to the rural community…I don’t think the rural community can prosper without the industrialization that must also take place in the world of century.

Question - Sir, in the worst case scenario if you have to move this project out outside West Bengal then would it affect the fate of future possible investments by the Tata group?

Mr. Tata - Of course, it would.

Question – Return of the land is it possible to negotiate?

Mr. Tata-It’s not for us to negotiate. The ancillary people have committed themselves to come. In many cases construction of their plants is underway, although not totally in phase with our plant, it is because for two monsoons the site has been under seven feet of water. I cannot emphasize enough the hardships that we have undertaken which most of you are unaware of. We have had, apart from the disruptions, we have had floods, we had to fill the site at a great cost to ourselves. There’s been silting of the waters around us, which we’ve had to rectify. There would have been no cultivation in these last two years because the site has been like a lake.

Question - Mr Tata, are you thinking of talking to Mamata Banerjee?

Mr. Tata - Ms Banerjee made a statement that she would be open to talking to the Tata’s and Mr. Ravi Kant, our MD Tata Motors immediately wrote to her expressing Tata Motors willingness to meet with her and wrote to her giving a letter that explained our position to avoid any misunderstanding so that our meeting could be worthwhile.

(TRANSCRIPT OF MR. RATAN TATA’S MEDIA INTERACTION IN KOLKATA ON 22ND AUGUST, 2008)