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Hours after Tata Motors announced that it was exploring options to relocate its Nano car plant from Singur in West Bengal, chief minister Vilasrao Deshmukh renewed his offer to Ratan Tata to set up the project anywhere in Maharashtra.

“Our offer is open. If Ratan Tata desires to set up his plant in Maharashtra, he is most welcome ,” Deshmukh told TOI.

More than a week ago, when Tata threatened to pull out his dream project from West Bengal following violent agitation by the Trinamul Congress , Deshmukh was the first chief minister to step in to offer land to the Tatas. He was followed by Punjab and Orissa . “I have personally spoken to Tata,” Deshmukh said.

According to reports, in his talks with Tata, Deshmukh had reiterated his commitment to provide land for the prestigious project.

In its earlier statement, the state government had offered land for the Tata project in Latur, Nagpur, Amravati, Aurangabad , Pune and Nanded. Deshmukh had stated that if there was a need, his government would deploy a battery of officials for holding talks with the Tatas. “We have offered land for the Tata project. Now, it’s for the Tatas to take a decision,” said a senior industries department official.

In view of the deteriorating law and order situation in West Bengal, the official said, the state government was hopeful that Ratan Tata would choose Maharashtra for setting up his plant. “Deshmukh has already offered a red carpet welcome to Ratan Tata. If Tata asks for more concessions, the state government will certainly consider them,” he said.

Despite the fact that more than a dozen major projects, particularly the special economic zones and power projects , were locked in an unexpected controversy over land acquisition, during the last five years, Maharashtra has succeeded in attracting the biggest-ever industrial investment from both domestic and foreign entrepreneurs. In the last three years, it signed 84 MoUs, which involves an investment of Rs 1.24 lakh crore.

“It’s a fact that the progress of some our SEZs and power projects was very slow following the farmers’ agitation, but so far as the industrial investment is concerned, Maharashtra has retained its top position ,” he said.

Quoting a recent report published by Assocham, the official said the investment in Maharashtra stood at Rs 1,20,065 crore, followed by AP, Orissa, Karnataka and Gujarat.

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The ongoing impasse at Singur is making Tata Motors’ top vendors extremely antsy, prompting plans of either a pullout or a significant scaling down of operations in West Bengal.

Even before the company officially announced suspension of construction and commissioning work at Singur on Tuesday evening, a section of Nano vendors had indicated that they were planning to either shift to another Tata Motors’ plant location or substantially scale down their presence at Singur.

Bengal stands to lose not just the mother plant but 56 ancillary units and the jobs they would create as well. The agitation has also resulted in the scaling down of Nano targets for this calendar year.

Sources say that the earlier target was to hit around 50,000 units between October and December but now that has been scaled down to a mere 5000-6000 units for the same period. Tata Motors has never officially announced its production or sales targets though the Singur plant was to have started with 250,000 units, to be scaled up to 350,000 units.

According to sources in the auto industry, the fiveday standoff at Singur has made vendors extremely apprehensive. Tata Motors has reportedly asked its vendors to keep a back-up plan ready when the stalemate seemed set for a long haul. Many of the vendors for Tata Motors’ Nano car have manufacturing facilities at Pantnagar and are suppliers for Tata Motors’ small truck ACE, which is manufactured there.

As a result Pantnagar is emerging as the favourite Plan B option for most big vendors. Says a top Nano supplier which is putting up a significant facility at the supplier park in Singur, “We are looking at phasing our investments there. As of now, if we have to, we will put in only investments required for the trim that will debut first. Later trims and their investments could well go to alternative sites like Pantnagar.”

What helps is that most of them already have land in Pantnagar. “We will move with the Tatas. We will go wherever they go. We are supplying them critical engine parts for Nano. It is a very sensitive component and we had planned to supply it from our Gurgaon plant for the first year till our plant came on stream at Singur. We also have taken land at Pantnagar, which is independent of Tata Motors’ facilities and in an eventuality, we could commence production from Pantnagar if required,” said a Delhibased Nano supplier.

Another supplier, which is supplying electric components and switches, is heading for Pantnagar too. “We have not been officially asked yet, but there are feelers to look at alternate production sites. We have a small manufacturing facility at Pantnagar and another one in Pune. We would supply Tata Motors from both of these facilities for Nano and its other product in future,” said the supplier.

The vendor park at Singur was supposed to house 56 Nano suppliers. Some of them had started construction work and others were just about starting, depending of the nature of the components they supply. Tata Motors has consistently maintained that the Nano production model is such that the vendors and the company have to be contiguous.

Governor agrees to play mediator

IT might prove all in vain. But even as Tata Motors announced late on Tuesday evening its decision to suspend work at Singur coupled with plans to relocate the Nano factory, West Bengal governor Gopal Krishna Gandhi agreed to don the mediator’s hat between the state government and opposition Trinamool Congress to save Singur.

It might just prove a trifle late in the end. Be that as it may, Raj Bhavan circles confirmed, “The governor has made the decision known to chief minister Buddhadeb Bhattacharjee during his talks with the latter on Tuesday evening. The request had come from the Trinamool Congress leadership earlier in the day.

A senior bureaucrat of the state government said, “The decision has come at a time when the governor himself had started taking the initiative to resolve the impasse. He had held several rounds of talks with both the chief minister and the leader of the Opposition for the past few days.”

Irked by constant intimidation of its workforce by agitating Trinamool Congress workers, Tata Motors has evacuated its manpower from Singur.

None of the 600-800 engineers, executives and technocrats came to work since Thursday night after the management decided to pull out the workforce, including about 500 construction workers, sources close to Tata Motors said.

Asked if it was a precursor to pull out the project to manufacture the world’s cheapest car ‘Nano’ from the state, the sources said currently, the thinking is not on that line, as safety of workers has taken the precedence because of prevailing tension.

A final view would be taken only after restoration of peace, the source said when asked about Tata Group chief Ratan Tata’s threat to withdraw the project from West Bengal in case violence persisted.

Contrary to the promise that Trinamool Congress and Khet Majur Samity would stage peaceful ’satyagraha’ protest against state government, there have been numerous cases of intimidation during the sit-in protest since August 24, sources said.

“The workers and the executives were afraid and worried and our foremost priority was to ensure their safety Hence, the management decided to evacuate its manpower from the plant late last evening,” a company official said on the condition of anonymity.

When contacted, a Tata Motors spokesperson told PTI from Kolkata: “Since the employees and contract labourers had left the plant late last night, it was a conscious decision of the company that there would be no attendance at the project site at any of the three shifts today.”

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