Most vendors set to return land

Leading vendors of the Tata Motors' Nano project intend to set the ball rolling to return their land in the ancillary park area at Singur and said they aim to begin talks with the West Bengal Industrial Development Corporation (WBIDC) on the issue immediately.

One vendor told Business Standard, "We want to dispose of the land in Singur as no factory is coming up there. We are writing to WBIDC for this purpose."

The company had paid Rs 80 lakh for its plot in the ancillary park in Singur and had signed a direct lease agreement with WBIDC.

According to the contract signed by the vendor with WBIDC, the land was priced at Rs 15 lakh per acre and the lease fee was to be paid every year. Most vendors had signed individual lease contracts with WBIDC.

Sources in Caparo Engineering, supplier of sheet metal and body frames for the Nano, said the company may seek compensation from WBIDC for the price of land with interest.

The company claimed it had invested around Rs 100 crore on its facility at the vendor park and was ready to go into production when the project was pulled out of Singur in October 2008.

The source added that the company will wait for guidance from Tata Motors on the land issue.

Another vendor, Bosch India, said it is yet to decide on the land issue and will wait for Tata Motors to take a final call.

Bosch has adopted a wait-and-watch policy before starting construction at Sanand in Gujarat, the relocated site of the mother plant.

Subrata Gupta, managing director, WBIDC, said if any company wants to return the land, WBIDC will pay them.

However, Gupta said, so far only one of the vendors has approached the corporation for the purpose.

"On the contrary, some vendors have indicated that they want to utilise the land but change the product, which was to be originally manufactured, specific to the Nano,” he added.

Around 55 vendors associated with the Nano project had signed lease agreements with WBIDC for the Singur land.

As vendors gear up to return the land from the 290-acre ancillary park, new industrial units are expected to come up at Singur.

This may see the return of the 300-odd acres as demanded by local opponents, who claimed the farmland had been “illegally” acquired by WBIDC.

Trinamool Congress (TC)-led agitators, who forced Tata Motors to abandon its project, said if the disputed 300 acres of land is set aside, new units could come up on the remaining portion of the 997-acre plot.

Tata Motors, however, has refused to accept the condition.

Also read:  February 3: Tata Motors retains Singur land for now 

February 4: Nano exit fails to resolve land issue