Singur Of
Tata Nano Fame Is The 15 Year Old Saga Of A Political Potboiler & An
Industrial Wasteland
At
independence, and for a couple of decades after, West Bengal was the most
industrialised state in India and a great deal of business and industry was
head quartered in Calcutta, as it was known as then. People flocked for
employment and commerce to a cosmopolitan and elegant former capital of the
British Empire in the sub-continent.
But all this
changed drastically, and as if forever, with the advent of 34 years of Left
front rule, after the earlier Congress governments were vote out. This, soon
after a vicious Naxalite agitation, that was brutally suppressed by Congress.
By the time
the former chain-smoking Left Front Chief Minister of West Bengal, Buddhadev
Bhattacharya finally came into his own, he was keen and eager to turn a page
and reindustrialise the state. This was some time after the passing away of
anti-capitalist industry, the long-term Chief Minister Jyoti Basu.
Basu enjoyed
a titanic stature, reputation and affection amongst the people of West Bengal. This
was mainly due to his land reform that gave land to the landless. Then there
was his abiding sympathy for the labourer and farm worker. His policies against
caste discrimination and a secular approach that enthused the minorities in the
state in favour of the Left Front. Basu’s Brown Saheb sophistication endeared
him to the middle class and the intellectuals too.
British
educated Basu’s three decades at the helm, saw every industry strike- bound,
locked-out or closed down, till they all fled West Bengal. All except for the firms associated with tea and cigarettes.
And these two businesses were geographically strapped to stay put. The only
person who ran a factory successfully in Jyoti Basu’s time, the joke goes, was
his son Chandan Basu, who has since seen fit to repair to Canada, out of the
reach of inconvenient questions.
Jyoti Basu
was many things to the Left Front and even as a support to Indira Gandhi’s
government at the Centre, but he effectively ruined the industrial climate in
West Bengal. So much so, that it is much the same today with most investment
refusing to come to West Bengal despite exhortations from its government, its
intelligent and educated population.
Bhattacharya,
in perhaps a Stalinist move in retrospect, had the West Bengal Industrial
Development Corporation (WBIDC) sign an agreement with Tata Motors. It was to
set up a green-field factory to manufacture the revolutionary Tata Nano 600cc
petrol-powered motorcar that was to be sold initially for just Rs. 1 lakh. It
could, the prototypes showed, transport five people comfortably. Ratan Tata’s
dream child, it was intended to revolutionise transportation for the lower
middle class. The Singur plant would employ about 2,000 persons directly, and
provide employment to over 10,000 people indirectly, when it became
operational.
The
Bhattacharya led government acquired
nearly 1,000 acres of the ‘three-crops a year’ fertile agricultural land at
Singur for the project from the none too happy farmers, providing meagre
compensation in the bargain. Knowing the political climate in West Bengal, it
was an agitation waiting to happen. The Tata Motors and WBIDC jointly chose
Singur for its proximity to Kolkata, just 40 km away, and its good connectivity with the
highways nearby. It did not, it appears, take care of local sentiment in using
a high hat colonial land acquisition law.
But when
Trinamool Congress started its agitation against the location of the plant, the
contention was why it wasn’t sited in designated industrial areas instead of on
fertile agricultural land. Trinamool Congress alleged that the Left Front
government had forcibly acquired the land despite farmer protests, and the
project could not go ahead.
Despite
early trouble, Tata Motors began to pour in an estimated Rs. 1,800 crores into
the project from January 2007. Thirty of its vendors set up plant buildings alongside
for an investment of over 170 crores.
The Left
Front government, despite best efforts, were not able to settle matters with
the Singur farmers to their satisfaction. Fed up with the turmoil, then Tata
Chairman Ratan Tata decided to relocate the project to Sanand in Gujarat, towards
the end of 2008 - on October 3, 2008.
That the
Tata Nano was not a great success in terms of sales, despite incentives offered
by the Gujarat government, is another story. It is likely, according to some
reports. to see a new avatar as an electric car soon.
But all the
while, the Trinamool Congress agitation intensified along with attacks against
plant personnel. So much so, that the Left Front government of Buddhadev
Bhattacharya was brought down by the Trinamool Congress over this matter.
Trinamool Congress came to power in its stead, and has been running West Bengal
for three consecutive terms ever since. It is no wonder that the Singur
agitation has been inserted into the school text books in the state.
Singur is
back in the news after 15 years, with the unanimous arbitration award of Rs.
765.78 crores in compensation to Tata Motors payable by WBIDC, one crore in
legal expenses in addition, plus 11% interest from September 1, 2016, till the
money is paid in full. With interest, the compensation to Tata Motors tops Rs.
1,350 crores if it were to be paid today.
The West
Bengal government headed by Mamata Banerjee intends to challenge the award
either in the Calcutta High Court or in the Supreme Court.
One argument
goes that the initial acquisition of the land was declared illegal later by the
apex court in 2016, as it had failed to meet the requirements of the Land
Acquisition Act 1894, and was ordered to be returned to the farmers.
However,
this may have come as too little and too late. The Leader of the West Bengal
Opposition, BJP’s Subhendu Adhikari, has stated that the agricultural land has
been ruined by the works put in by the proposed plant, and was rendered unfit thereafter for cultivation
afresh. Industry, as usual, lost out in the bargain.
Ironically, the arbitration award with its
resultant bad publicity has come when the West Bengal government is gearing up
for its Global Business Summit shortly on November 21-22. However, previous
business summits have never gone well either, with most pledges and promises
unfulfilled.
The ruling
Trinamool Congress is also battling widespread corruption charges with as many as
five of its ministers under arrest or in jail, and crores in unaccounted money
confiscated by central authorities like the Enforcement Directorate.
(1,067
words)
November
1st, 2023
For:
Firstpost/News18.com
Gautam
Mukherjee
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