The possibility of a rapprochement between Ratan Tata, the Tata Group chairman, and the West Bengal government on the Singur standoff and the aftermath appears to be fading, with both sides refusing to budge from their respective positions.
Ratan Tata on Tuesday said there was a need to show there was no hostility towards the group. “When we feel that way, we will invest like in any part of the country,” he said at the Tata Global Beverages annual general meeting here, in response to queries from shareholders.
The state government, which enacted a law to revoke Tata Motors’ title to land previously allocated at Singur for the Nano car factory and ancillary supply, is also in no mood to climb down from its stand State commerce and industry minister Partha Chatterjee said the initiative would have to come from the Tatas.
Asked about the possibility of an out-of-court settlement in the Singur case (something the high court had also suggested), Tata said the issue was being fought in court. “We have said that allocation of land should not be done before the court decides,” he said.
In 2009, on a visit here, Tata had said the company would return the land at Singur, if compensated. However, official sources said Tata Motors had not challenged the Singur Act only for compensation. The Act had accused the company of non-performance and abandoning the project, but was silent on the circumstances. Around 8,000 jobs would have been created in and around the region had Nano been operational.
Tata on Tuesday said he’d take “a minute” to dwell on West Bengal, but then spoke at length. “The feelings for Bengal caused us to look at setting up the Nano plant in West Bengal and to increase our investment. We did not (have) any ulterior motive, other than the fact that industries had ignored this part of the country. That’s why we thought we should be here. I had mentioned at that time, in many ways, we have a fondness for the people of West Bengal and wanted to make that move. That feeling for West Bengal still exists,” he said.
The group completed its medical centre project in the city, even after pulling out from Singur. “The fact that we have the hospital and have spent close to Rs 300 crore is a reflection of our affection for the state,” Tata said.
And, in the same breath, added there were no new investment plans.
TGBL eyes large-scale acquisitions abroad
The world’s second largest tea company Tata Global Beverages Ltd is looking at large scale acquisitions abroad, through the money raised from Glaceau stake sale and also by diluting a part its overseas businesses, a top company official said on Tuesday .
Group Vice-Chairman R K Krishna Kumar said, “We may dilute a part of our business to raise some capital. We are sitting on Rs 1,000 crore through Glaceau stake sale. Adding both, we will have a warchest ready for large scale global acquisitions.”
There were reports the firm was planning to dilute its stake, at the holding company level or in the UK subsidiary, Tetley. Kumar was speaking on the sidelines of the TGB annual general meeting.
