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Vendors not yet asked to wind up at Singur
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September 25, 2008 19:11 IST
Last Updated: September 25, 2008 19:23 IST

With prospects of Nano rolling out from Singur becoming bleak with each passing day, Tata Motors [Get Quote] Limited, however, has not yet asked the vendors to wind up operations there.

There has been no work at the ancillary units at Singur since suspension of work at the mother plant on August 29, vendor sources told PTI.

Asked whether Tata Motors had asked the vendors to wind up operations at Singur, the sources said, "not now as of yet".

The sources, however, said the company would have to take a decision next week on whether to abandon the Singur project or wait till normalcy is restored.

A total of 55 vendors had been allotted land near the mother plant for supplying auto components for the Nano small car priced at $2500.

Prominent among the vendors were Tata Ryerson, Caparo India and Subros.

Asked whether Tata Motors would be able to meet the roll-out deadline of October-December quarter if normalcy was restored shortly at Singur, sources said it was 'technically possible'.

Sources said if normalcy was restored immediately, then it would not be possible to start work before the middle of October since construction workers and engineers had gone away and would take some time to return.

Assuming that if work resumed during the middle of next month, then it would be 'technically possible' to roll out the car during the middle of December.

The sources, however, expressed despair at the turn of events taking place at Singur. "Everything is going downhill."

Asked which would be alternative roll out place, Pantnagar or Pune, the sources said it could be both for a temporary period of time.

The company had drawn up plans to manufacture 1000 cars.

For the long run, the company would have to think of alternative sites if Singur was abandoned, they said.

The Singur project has been in the eye of a political storm with the West Bengal government and Opposition Trinamool Congress warring over the issue of land allotment to Tata Motors.

Work at the mother plant and elsewhere has been suspended since August 29 on safety and security grounds.

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