Singur's loss could be Pantnagar's gain

Pantnagar in Uttarakhand is leading the race to become the alternative site for Tata Motors' Nano plant. The company manufactures about 250,000 units of Ace and Magic vehicles over 1,000 acres in an indutrial estate in the state. The state also houses its vendors' park spread across 300 acres.

Sources close to the development said the Tatas earlier had an alternative plan to make the Nano frame in Pantnagar and send it to Singur, where it would be assembled if there was a delay in setting up its facilities in West Bengal.

Pantnagar was seen as one of the satellite locations in the company's overall plan to have smaller units across the country, where the car would be assembled, apart from having one mother plant in Singur. Pantnagar also houses one of Asia's largest paint shop facility, which can be shared by the Nano too.

 

With nearly 75 ancillary units of Tata Motors setting shop already in the industrial estate, producing Nano from Pantnagar would not be a problem.

Sources in the state said apart from the two vehicles, the Tatas have been looking at manufacturing two to three more vehicles at their sprawling plant, which includes Indica and Indigo, among others.

Uttarakhand offers some major tax benefits for industries. Vehicles manufactured in the state attract only 4 per cent central sales tax. Besides, there is a 100 per cent exemption from the excise duty, apart from 100 per cent exemption from the income tax for the first five years of operation. All these benefits will go a long way in helping the company reduce the cost of production of the Nano.
 

Venugopal Dhoot
Chairman, Videocon Industries 

“This is plain bad luck. It is sad that a visionary like Ratan Tata has got embroiled in this issue”  

A M Naik, Chairman,
Larsen & Toubro 

“It will hit investments into West Bengal. Everyone should work towards an amicable solution” 

Venu Srinivasan
CMD, TVS Motors
Indian Overseas Bank 

“Only politics has brought the project to a grinding halt. This is bad for the entire country”

Sunil Kant Munjal
MD, Hero Management 

“This is a serious concern. We must have a mechanism, which allows a smooth transfer of land”  

Rajeev Chandrasekhar
President, Ficci 

“The Singur dispute need not have reached this point. There should have been an open dialogue”  

K V Kamath
President, CII 

“It's a serious setback. Investors will reassess investment decisions in various locations”

The Tatas also have 900 acres in Pune, where they are planning an expansion with an investment of over Rs 6,000 crore, to reach a capacity of around 600,000 units a year. However, sources said, there is very little land available there for a new car, despite the presence of an established vendor base in and around the city.

Many other suitors, including Orissa, Maharashtra, Haryana and Andhra Pradesh, have also lined up to provide a home for the Rs 1 lakh people’s car.

The Uttarakhand government has also said it is ready to provide all facilities, if the company decides to shift its project to the state.