Singur: Vendors see hope in high Nano bookings, stay put

Whether Tata Motors will vacate the site of its original Nano car factory at Singur or not may depend, many believe, on how many people book the now-famous vehicle.

Many who had taken up space at the vendor park, the centre of the main dispute with the give-us-our-land-back agitationists led by the opposition Trinamool Congress, are hanging on in this hope.

Nano vendors say if all-India bookings cross 500,000, Tata Motors may have to explore the option of having a satellite plant to its present mother factory at Sanand near Ahmedabad.

Sanand is expected to start production by the end of December and is to produce around 350,000 cars a year in a phased expansion. Nano bookings close on April 25.

The Nano is presently being made at Tata Motors' Pantnagar plant at Uttarakhand. It was to produce 100 cars a day but is presently doing 40 to 50 a day.

Some Singur vendors say Tata Motors has asked them to pay the lease rental for 2009-10. They say they will pay.

Asked about this, a Tata Motors spokesman said the Singur plot was still on lease to Tata Motors. "The equipment brought to set up the plant continues to be at the site. The company will discuss matters connected with the plot with the West Bengal Industrial Development Corporation and take requisite action."

Before Tata Motors pays the lease rental, some vendors have done so. The main agitation, led by the Trinamool Congress, was against the vendor park, which party chief Mamata Banerjee wanted shifted.

The state government's industry secretary, Sabyasachi Sen, confirmed that some vendors had paid the lease rental. And that those who have expressed their intention to return the land are few in number.

Among those who have already paid is Tata Ryerson, a major supplier for the Nano, including the chassis. Another known name who is going to pay is Sona Koyo Steering Systems.

Surinder Kapoor, chairman and managing director, said: "The lease rental is a small amount, we will pay. We are currently in discussions with Tata Motors as to how to restructure the issue. We are yet to decide if we will move out of Singur."

Automotive lighting systems supplier, Lumax Industries, has been asked to pay the rent by Tata Motors and it says it will. Bosch India says its decision on the Singur land is still pending.

However, at least two vendors -- Exide Industries and Caparo -- have written to the WBIDC about returning the land. Exide indicated that in the event of a satellite plant being set up at Singur, the company would consider buying land at market rates or supply from its nearby Shyamnagar plant.

In sum, it appears that neither the government nor Tata is in a hurry to decide on Singur. Recently, Chief Minister Buddhadeb Bhattacharjee said the people of Singur wanted the Nano plant to be set up in the area and this had been conveyed to Ratan Tata.

Also, Tata said at the commercial launch of Nano, "We haven't decided on what to do with the sheds at Singur. Nothing has been ruled out."