TT Epaper LHS
The Telegraph
TT Mobile
 
 
IN TODAY'S PAPER
WEEKLY FEATURES
CITY NEWSLINES
FEEDS
  RSS
  My Yahoo!
SEARCH
 
Archives Web
 
ARCHIVES
Since 1st March, 1999
 
THE TELEGRAPH
 
CIMA Gallary
 
Email This Page
Tata shift signal to vendors
Units get advisory, paint job cancelled

Calcutta, Sept. 24: Tata Motors has formally asked some vendors to “shift” from Singur, sources said.

At least two of the 55 vendors have received the communication from the Tatas, the sources said. One of the companies has been identified as Global Gas Equipment Industry of Mumbai.

However, the sources declined to say where the vendors had been asked to shift and whether they had been advised to move out for the time being or for good.

A paint manufacturer located in Bengal has also been asked not to supply to Singur. A contract given to the paint-maker, valued at Rs 1 crore, has been cancelled, the sources added.

The shift advisory to vendors spells trouble for Singur as the maximum trickle-down effect on the people in the vicinity was expected to flow from such units.

The disclosures came at a time Tata Motors has stepped up the pace of moving equipment out of the Singur factory — a process that started around two weeks ago.

Auto industry observers said the shifting of equipment did not necessarily mean a pullout.

“It is not that the equipment cannot be brought back if the situation improves. The company seems to be focusing on making sure that the promised launch of Nano in the third quarter happens despite Singur,” an analyst said, suggesting that the machinery could be headed to either Pantnagar in Uttarakhand or Pune.

Large units such as the assembly plant, paint and engine shops — capable of producing 1,000 cars a day — will be taken out only when Tata Motors decides on the new location for the mother plant, other sources said.

“A makeshift arrangement is being made. What they are looking at now is about 100 cars a day. Real movement will start when they get 1,000 acres elsewhere,” the sources added.

A team of officials from Tata Motors is scheduled to meet Uttarakhand chief secretary Indu Kumar Pandey tomorrow. “As far as we know, the discussion will be on some of their outstanding issues,” Pandey said.

Officials in Bengal said they did not expect the Tatas to make a formal announcement on the pullout immediately.

“There will be legal and other implications,” said an official. If a pullout is announced, questions like whether the land, leased for 90 years, should be returned and whether the company should be compensated — since the ground for withdrawal is security considerations — will arise.

The officials said the Tatas would announce an exit only when they manage to secure land as well as a package of benefits similar to that offered by the Bengal government to enable them to keep the entry-level price of Nano pegged at Rs 1 lakh.

Top
Email This Page