HC asks CIC not to disclose text of agreement with Tatas

In a move perhaps without precedent, Tata Motors today moved Calcutta High Court against the state information commission to prevent it from releasing “secret” sections of the commercial agreement signed between the company and the government of West Bengal to set up the Nano factory at Singur, 40km from Kolkata.

The High Court retrained the information commission from releasing the “secret” portion of the document for two weeks.

A few days ago, the commission and the state government had released the basic part of the contract that had revealed that Tata Motors had received a Rs 200 crore loan at 1 per cent, tax breaks and subsidised land and electricity and had been promised refund of VAT and central sales tax on the car.

 

The opposition Trinamool Congress had been alleging for weeks that the “secret” portion of the contract contained a list of further benefits that had been promised by the state government to Tata Motors.

“The Tata action in the Calcutta High Court supports our worst fears”, a TC leader told Business Standard.

“The benefits promised under the portion of the contract already released prove that the state government was subsidizing the Rs 1 lakh car to the extent of more than a quarter of its cost”, the leader alleged without substantiating on the calculation system used by TC.

The state information commission was set up by the state government with a chairman and member nominated by the chief minister, and with the leader of the opposition also serving on it.

In a parallel move, which was also deviation from its earlier stand, the West Bengal government has placed a new proposal to the Opposition led by the Trinamool Congress, which entails giving more land from the Tata Motors project site at Singur than what it had earlier offered, in an urgent bid to resolve to the deadlock.

After its third land committee meeting today, the West Bengal Industrial Development Corporation (WBIDC) managing director, Subrata Gupta said that a proposal more acceptable to the Opposition had been placed and it obviously meant giving more than 40 acres from the project site.

Trinamool Congress leader, Mamata Banerjee, had demanded 300 acres from the project site. The alternative proposal has some kind of positive response from Tata Motors.

Responding to queries from mediapersons, Gupta said that he had got feedback from the Tata Motors side as well which was conveyed to the other committee members from the Opposition side.
Immediately after the meeting, state government officials and commerce and industry minister, Nirupam Sen, were locked in an emergency meeting while Bhattacharjee and Manna headed to discuss the proposals with Trinamool Congress leader, Mamata Banerjee.

Chief minister, Buddhadeb Bhattacharjee said, the committee meeting was positive and a decision would be taken after discussions with Mamata Banerjee.

The four-member committee set up under the aegis of West Bengal Governor, Gopal Gandhi, comprises Subrata Gupta, Hooghly District Magistrate, Neelam Meena from the government side and Trinamool Congress MLA, Rabindranath Bhattacharjee and Krishi Jami Raksha Committee convenor, Becharam Manna.

The 40-acre, which was part of the land held by WBIDC. WBIDC has 47.11 acres at Singur earmarked for rehabilitation of project affected families.

However, it is not clear where the additional land currently being offered to the Opposition would come from and whether it involves the 290-acre vendor park also. The 997-acre project site also includes 29.5 acres of water bodies and 14.33 acres for power sub-station to be set up by West Bengal State Electricity Board. Also, around 40 acres is held by different government agencies.

According to the agreement between the West Bengal government and the agitating farmers represented by the Trinamool Congress, the report was supposed to be tabled on September 15 but the Rabindranath Bhattacharjee indicated yesterday that they could seek more time.