TATA MOTORS UNLIKELY TO SHIFT OUT OF SINGUR BEFORE YEAR-END

 While the clouds around the much-awaited Nano from Tata Motors have lifted, with the car scheduled to be launched on the 23rd of this month, there is still much to be sorted out at the earlier proposed mother plant for the project at Singur. According to state government officials, the company will not be able to vacate Singur land before December this year. Coincidentally, the plant at Sanand in Gujarat is expected also be up and running by then.

Tata Motors have started shifting machineries from Singur. They will take approximately 10-12 months to complete their shifting process. The land is still with them, said Subrata Gupta, managing director of West Bengal Industrial Development Corporation (WBIDC).

However, people close to the development at Singur told FE that around 40%-60% of the shifting work has been completed and the company will be in a position to move out major machinery in another two months time. Further, they added that there has been no discussion between the company and government recently on the future of the land. Significantly, they also hinted on the possibility of the Tatas coming back to Singur if not for the same project, some other.

Meanwhile, Chinese automobile manufacturer First Automobile Works (FAW) showed interest in the site, but the state government did not find the company suitable. The Chinese firm, which would need almost 600 acres for the project, is also looking at launching a small car priced at Rs 1.6 lakh.

In an earlier communication with the West Bengal government, Tata Motors had said that no decision could be taken before the first quarter of 2009-10. The company had accordingly written to the state government in a letter dated October 27, 2008.
A Tata Motors spokesperson said, We will shift equipment, which is a t Singur, at an appropriate time. While he did not divulge more on the status of the shifting work at Singur, he said, the company will discuss the Singur lease with the West Bengal government.

Though he did not specify the month when the lease agreement with the state government expires, it is believed that the company had paid rent till 2009.

Meanwhile, two of the 54 vendors who were allotted land at Singur, have approached the state government to change their product line. To put things in perspective, the same vendors are now looking at manufacturing different product on the same land for the same company or other. And to change the product line, they have to inform the state industrial development corporation for permission in advance. Also, one vendor wants to return their land and take refund, Gupta said.