Thaindian News

Kolkata, June 14 (IANS) Rebutting West Bengal government’s reference to the Tata Motors’ “non-commissioning and abandoning” of the small car project in Singur as a reason for taking back the land, the automobile major Tuesday clarified that it had to “reluctantly close operation due to lack of congenial environment”.

The Singur Land Rehabilitation and Development Bill, 2011, passed in the assembly Tuesday said it was to provide for taking over the land covered by the lease granted to Tata Motors in view of “non-commissioning and abandoning of the small car project and ancilliary factories and to return a portion to unwilling owners and utilise the remainder in public interest.”

“Besides, no employment generation and socio-economic development has taken place and people in and around the area have not benefited in any manner…,” the bill said.

Tata Motors countered that the bill did not state “the reasons for stoppage of operations and shifting of the plant by the company”.

Stating it would take appropriate steps after studying the bill, the company also claimed that it had to operate under “very difficult conditions, amidst violence, disruption of activities, damage to property, threats to personnel” in setting up and commissioning the plant.

“An appeal was made on August 22, 2008, for a congenial environment, which was rebuffed with an escalation of hostilities through a blockade on the highway, more incidents of physical assault and intimidation of personnel.”

As the then state government failed to provide congenial environment and guarantee safety of their employee, the company had to close operations Oct 3, 2008, and eventually moved out, the company said.

The company claimed that it had already invested nearly Rs.1,800 crore in establishing the plant.

It said had the project been allowed to flourish, the plant would have absorbed directly 2,000 persons, “and in a cascading manner created employment in excess of 10,000 jobs amongst the vendors and service providers in the vicinity of the plant”.

“It was an immensely painful decision for the company to pull out the project, forced by the circumstances that prevailed,” the release added.