In talks with Bengal for compensation package, Tatas tell vendors
Tata Motors is seeking a compensation package from the West Bengal government for the failed Singur project. Sumant Banerji reports.business Updated: Oct 17, 2008 23:08 IST
Tata Motors is seeking a compensation package from the West Bengal government for the failed Singur project.
This was disclosed by senior company executives at a meeting with 30-odd vendors for the Nano car project. The vendors are facing huge losses on account of their investments in Singur.
The vendors were also shown the map of the re-located project area at Sanand in Gujarat.
“This was the first such meeting after a long time and the vendors and Tata Motors are all looking at setting up production in Gujarat and start production,” said Ramesh Suri, chairman, Subros Ltd. “Considering the losses suffered by vendors in Singur, the company has assured us that it is talking to the West Bengal government for a compensation package.”
The meeting, which lasted for over three hours, was attended by senior officials of Tata Motors including Ravi Kant, managing director, Rajiv Dubey, president (passenger car division) and PM Telang, executive director (commercial vehicles).
The company however did not announce a specific date for the Nano launch.
“Lack of volumes is the basic problem right now and the company is trying to strike a balance between creation of volume and delay in the launch,” a vendor who attended the meeting, disclosed. “The indication we got is that Nano could be launched by the end of this year or early January, and the company is ramping up production at its plants in Pune and Uttarakhand for that. The Sanand plant will still take a lot of time.”