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Tatas shocked by Singur deal; to suspend work

September 8, 2008

Miffed at not being consulted before West Bengal government reached a settlement with Trinamool Congress's Mamata Banerjee, Tatas could pull out from Singur as they feel that return of any portion of land would make the project to manufacture the world's cheapest car unviable.

Groping in the dark about details of the settlement, which the state government had not communicated to them till late afternoon, the corporate house said on Monday: "Tata Motors is distressed at the limited clarity on the outcome."

Tata Motors said it would not resume work on its small-car plant in Singur, claiming that the outcome of talks between the government and opposition parties to end protests against the project lacked clarity.

"Tata Motors is distressed at the limited clarity on the outcome of the discussions between the state government and the representatives of the agitators in Singur," a statement issued by the company said.

At the end of talks mediated by West Bengal Governor Gopal Krishna Gandhi yesterday, an official statement said that the government would respond to the demands of those farmers who have not received compensation and asked vendors of Tata Motors not to go ahead with construction of their respective facilities in the meantime.

The company said that it would review its stated position only if it was satisfied that the viability of the project was not being impinged.

Text: PTI, Business Standard, Agencies

Image: Tata Group Chairman Ratan Tata gestures as he leaves after a press conference in Kolkata. | Photograph: Deshakalyan Chowdhury/AFP/Getty Images

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