Nano project suspension unfortunate: G K Pillai

Tatas' decision to suspend work at their car plant in Singur may have an adverse impact on West Bengal, union commerce secretary Gopal K Pillai said today.

“It is an unfortunate development, but one that was expected. It will have some adverse impact on the state, but it is not something that can be generalised. It was not just the land acquisition or the compensation, but also politics,” Pillai said. He said he expected there to be a glitch in investments in the state and the mood would sour.

Asked if the Centre could step in to resolve the situation, Pillai said that he does not think an intervention is possible. “Land is a state subject. There is nothing much the Centre can do in such a situation. The state should tackle this,” he said.

The Federation of Indian Chambers of Commerce and Industry said it looked forward to the Tata Nano rolling out as per plan, even if production were to shift to another plant. Ficci President and MP Rajeev Chandrasekhar said the stoppage of work and a possible pullout was obviously unfortunate. “We wish the Singur dispute had not reached this point. I believe it wouldn’t have if there had been better and more open dialogue among the investors, government and the local community early on.”