Vendor suppliers to the Nano project are likely to be as badly hit as Tata Motors itself if the they pull out of Singur. Though a majority of the 70 vendors who were supposed to set up plants in the 997 acre area have not started work yet, a delay or a relocation would inflate their costs as well.
“We have been talking to Tata Motors from time to time considering the sensitivity of the issue. We have faith in their judgement and stay committed to the project. Whatever decision they take, we will follow,” said a senior official at one of the vendor companies that will supply engines to Nano.
Most of the companies are adopting a wait and watch policy and deferring investments in the region for as long as possible. Still some who have already started work on their plants will have to incur losses.
“Plant and machinery equipment could be shifted but civil work cannot be compensated for,” said another vendor official. “If production schedule for the car is to be maintained then we need to build our plants without delay but under the current circumstances it is not possible.”