Thousands of people blocked traffic in eastern India yesterday to protest the scrapping of a Tata Motors factory to make the world’s cheapest car, a move trade groups said could hurt investment.
India’s Tata Motors announced its plans to leave the Nano car plant site in Singur on the outskirts of the West Bengal state capital Kolkata on Friday after weeks of violent protests by political activists and farmers whose land was seized.
Armed with iron bars and sticks, protesters shouted: “We want the Nano to roll out from Singur” and vowed to take on those opposed to the high-profile plant which supporters had said would transform the poverty-hit region.
The announcement by Tata Group chairman Ratan Tata of the plan to shift production came after building of the factory was halted in late August when protests made work impossible.
Farmers and activists led by Mamata Banerjee, the fiery chief of the regional Trinamool Congress party, accused the state government of forcing farmers to give up their fertile land for a pittance to make way for the plant.
“You cannot run a plant when bombs are being thrown, you cannot run a plant when workers are being intimidated,” Ratan Tata told reporters in Kolkata on Friday.
Tata said that there was no possibility the company would change its mind.
However, farmers in the area said they now faced the worst of both worlds.
“We’re frustrated and confused,” said Laxman Das, 60, whose land was expropriated.
“I don’t think I will get back my land,” he said, adding he still had not received any compensation for it.
Trade groups said the problems that engulfed the Nano, slated to be sold for 100,000 rupees (US$2,150), were a blow to India’s efforts to woo badly needed investment.
“Given the global turmoil, foreign investors could decide to go to safer destinations and not come here,” said Dilip Chenoy, director general of the Society of Indian Automobile Manufacturers.
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