We won't stay in an area where we are unwanted

Q&A: Ratan Tata, Chairman, Tata Sons

Tata Group Chairman Ratan Tata spoke to the media on the trouble in Singur and the future of the Nano plant. He was in Kolkata to attend a Tata Tea annual general meeting. Excerpts:

Mamata Banerjee has been asking you to return 400 acres of land. What’s your reaction?

We came to West Bengal at a time when many people considered us to be mad. We decided to locate one of our prime and most unique factories in West Bengal.

We were looking at a unique product at a very low cost. We wanted it to be a consolidated car company with its ancillary suppliers incorporated in the same location because logistics and transport are a major part of the component cost of any plant. We are trying to produce a car that has never been tried anywhere in world at that kind of price.

What has concerned us is the violence; the destructions, the safety of our employees, the safety of our equipment and investments and in fact the viability of the process as such. We don’t want to come to an area where we perceive that we are unwanted. If anybody is under the impression that we would not move because of the Rs 1,500 crore investment, then they are wrong.

Whatever the cost, we would move to protect our people. I can't bring our managers and their families to West Bengal, if they're going to be beaten, if there is going to be violence constantly, if their children are going to be afraid to go to school, and surely that is not what West Bengal is.

What is your anxiety?

My concern is the sense of tension and violence and disruption. Our people are working under tremendous tension.

Our compound walls have been broken, people have been coming in and materials are being stolen. We can't open and operate a plant with police protection.

If that is the way it is to be before we start, you can well imagine our concern what will happen if we try to operate. If statements are made that no car will be allowed to go out of the plant, we may have to rethink.

People are saying that the Singur deal lacks transparency. What is your take?

I don't believe that there is a lack of transparency.

At this juncture, are you confident of rolling out the Nano in October?

We are in a position to roll out Nano in October or close to October, but it seems that many people have desired not to see that happen. So, it's very easy for people to block that from happening.

Have you set any deadline for moving from Singur?

There is no time-frame but there is a concern for our people. I have made a major investment here, to move would be a great cost to the company, and great cost to the Tata Motors shareholders.

I think it is also going to be a great cost to West Bengal as I don't know how many Rs 1,500 crore investments would come to West Bengal. Is there any plan B?

There is no plan B at this point. Will you accept any alternative plan just to save the project?

Without the vendors, there may not be a Nano plant in Kolkata because the components would have had to come from other parts of India.

Is it possible to negotiate on returning 400 acres of land?

It's not for us to negotiate. The ancillary people have committed themselves to come. In many cases, construction of their plants is under way. I cannot emphasise enough the hardships that we have undertaken which most of you are unaware of.

Are you thinking of talking to Mamata Banerjee?

Ms Banerjee made a statement that she would be open to talking to the Tatas and Ravi Kant, our MD. Tatas immediately wrote to her expressing our willingness to meet her. We wrote to her giving a letter that explained our position so that our meeting could be worthwhile.