End of the road: What if Tata drives out of Bengal?

DRIVING OUT? Ratan Tata has made clear he won't conduct business unless conditions are conducive.

      

J & K | Chhattisgarh | Delhi | MP |
Mizoram | Rajasthan

Featured Blog

Rajdeep Sardesai

26/11: Terror comes precariously close

Featured Slideshows

New Delhi: Enough is enough – Tata Motors made its intentions and sentiments clear on Tuesday night in a press release that says the company is considering shifting the Nano project out of West Bengal.

As negotiations between the West Bengal government and Mamta Banerjee's Trinamool Congress get stalled, Tata says it’s looking at options for manufacturing the small car at other company facilities.

A detailed plan to relocate the plant and machinery to an alternate site is under preparation. The company adds that it will try and absorb the recently recruited and trained people from West Bengal at its other plant locations.

For the last five days no work had been going on at the Singur Nano plant following protests by Trinamool Congress.

But what does the Tata pullout – if at all - mean for the state, the company and the politicians?

CNN-IBN correspondent Sougato Mukopadhyay, CNN-IBN National Affairs Editor Diptosh Majumdar and Editor, Business World Jahangir Pocha analysed and explained the scenario that is and what could follow.

Mukopadhyay spoke with Trinamool leader Madan Mitra on the party’s reaction to Tata statement. However, Mitra remained deceptive and said “the only reaction is: It's an internal statement. I can't add more to it,” he said.

When asked if Tata scrapped the project, what happens to the TMC movement, Mitra said the party was protesting for a cause. "We are here for the sake of farmers. Her (Mamata) demand is just the return of 400 acre,” he maintained.

Jahangir Pocha, however, said it was too early conclude that it was the end of the road for Tata in Bengal. “The realization is dawning and like any other prudent company, Tata motors is looking at alternatives. But it's not the end of the road yet,” he said.

Pocha also rubbished Trinamool claim that the Tata statement was an empty threat. “I don't know what someone would gain by that. Mamata has done some service by raising issues with the project. But the party is not interested in a solution. They think they will just gain political mileage,” he said.

Majumdar too reiterated the point. He also said while Tata may have its Plan B ready, the state government has nothing to fall back on. “The state government has no Plan B, they are as fearful as Mamata is optimistic of gaining the rural electorate. Panchayat elections showed Left had much to worry about. Trinamool is looking at hinterlands of northern Bengal -- Hoogly, East Midnapore,” he explained.

But whatever happens on the ground, the biggest losers in the game will be the public of Bengal, Pocha said. "With a company of Tata's engineering prowess, I don't think that (moving out) would be an issue. Mamata -- even if she succeeds -- will get political benefit but won't win the state, the Left will continue to govern it, Tata will take a hit but will move to another state, the real losers are people of Bengal,” he said.