Friday, September 19, 2008

How will the farmers react?

How will the farmers react?

TIMES NEWS NETWORK

Bangalore: Could there be a Singur-like problem between the Karnataka government and Dharwad farmers on the purchase of 1,000 acres for the Tatas? A senior government official said preliminary reports on land acquisition in the area have shown that farmers will not object to selling their land.
   “The feedback is that people in Dharwad are willing to sell their land in the hope of getting better jobs from a project like a car manufacturing facility,” the official said.
   “But it will be an uphill task for the government to give land around Bangalore as the IT city is already very populated,” he said. “North Karnataka has been starved of investment for a long time and any investment will be welcomed by the people,” he explained.
   S Viswanathan, chairman of the Confederation of Indian Industry, Karnataka, welcomed the move to give land in Dharwad and said the organization has always told the government to make investments equally in all districts.
   He too felt Dharwad will not face the kind of problem Singur in West Bengal has faced. “It is true that land acquisition is difficult, but it is not an impossible task,” he said.
   Dharwad is also seen as a good fit for Tata Motors. The company is familiar with the area and the people as it has a commercial vehicle manufacturing facility there. It is also in the process of setting up a bus manufacturing unit soon.
   Dharwad is also close to Pune — a city known as the base of Tata Motors.

Murugesh Nirani plans to meet Ratan Tata

Murugesh Nirani plans to meet Ratan Tata

Chief minister B S Yeddyurappa with Tata Motors MD Ravi Kant (left) in Bangalore on Thursday

Bangalore: Even before Ratan Tata decided to relocate the Nano car plant from Singur in West Bengal, the Karnataka government offered Tata Motors 1,000 acres to set up a Nano unit in Dharwad, 450 km from Bangalore.
   The government was quick to sought an appointment with Tata. Large and medium industries minister Murugesh R Nirani sent a letter to Tata asking for more investment in Karnataka, especially setting up of the Nano car plant here.

Dear Ratan Tataji
Greetings from the Government of Karnataka. I would like to draw your kind attention towards your long standing relationship with Karnataka. The state government has been very supportive of projects of Tata Engineering and Locomotive Co Ltd at Dharwad, which was approved during 1990-97. We have also supported your recent project to establish manufacturing facilities for luxury buses, small buses and light commercial vehicles at Dharwad with an investment of Rs 2,734 crore, which was approved on September 3, 2007. Similarly, the iron and steel project of Tata Metalics Ltd at Haveri with an investment of Rs 984 crore was approved on March 17, 2008.
   We are happy that Tata is taking up projects in North Karnataka in a big way and many youths of that area benefit by them. Your projects will contribute to economic growth of the region.
   In this connection, we request you to take up some more projects in North Karnataka. We will be very happy to extend our wholehearted support to your projects. In this regard, I would like to meet you either in Mumbai or in Bangalore to exchange views on the industrial scenario in India as well as in Karnataka, since I value your views very much.
Yours sincerely

Murugesh R Nirani

LAST STOP? Karnataka ready to host Nano facility

LAST STOP? Karnataka ready to host Nano facility

Tata Motors Holds Talks With Yeddyurappa Govt; Dharwad Back In Focus

Bureau BANGALORE - Economic Times

   TATA Motors and the Karnataka government on Thursday made the opening moves in a gambit which could result in the beleaguered automaker moving its factory making the world’s cheapest car from West Bengal to the southern state. While chief minister BS Yeddyurappa promised the government’s full backing, Tata Motors managing director Ravi Kant said the company is looking for alternatives to the Singur site where work on its Nano small car project has stalled because of protests over land acquisition.
   “We are watching the situation carefully and are actively looking at alternatives. If we have to relocate, we will require about 1000 acre as it (Nano) is an integrated project. He (Mr Yeddyurappa) said that he will give us all support, assistance and required incentives,” Mr Kant told reporters after meeting the chief minister. Dharwad in the northern part of the state — an initial contender for the Nano factory before it lost out to Singur — is seen as the most likely location if a deal is struck.
   The Tata group’s construction equipment making unit Tata Telcon possesses some 300 acre in the city and the Tata-Marco Polo bus-making joint venture an additional 600 acre. “They will naturally need land and I have told them that we will provide assistance,” Mr Yeddyurappa said, referring to the possibility of the Rs 1-lakh car being produced in the state. “Karnataka has offered 1000 acres and all incentives for setting up the Nano plant in the state,” Tata Motors said in a statement through its public relations agency.
   Tata Motors suspended work in Singur on September 2 citing concerns about the safety of its employees. Agitators backed by the Trinamool Congress party have been demanding that the company return about 400 acre out of the 1,000 acre allotted for the project. The agitators say that land was acquired forcibly and adequate compensation was not paid. The Tatas say returning the land would make the project unviable and talks between the West Bengal government and the Trinamool Congress have not yielded a breakthrough.
   Maharashtra and Andhra Pradesh have said they are interested in hosting the Nano factory.
   Despite the promise of backing by Karnataka, the collapse about a decade ago of a high-profile airport project in Bangalore may make the Tatas wary. After being bogged down by years of delay, a consortium led by Tata Industries in 1998 pulled out of a venture to build an international airport in the city.

Tata & Marco Polo to roll out buses in Oct

The Tatas’ joint venture with Marco Polo will roll out its first bus next month and Karnataka is expected to be the first buyer of vehicles produced at the unit. “We have asked them to give us five buses on a trial basis,” Mr Yeddyurappa said. Swedish company Volvo makes buses at a factory on the outskirts of Bangalore and has the government as a major buyer.

Karnataka may not be best for Nano

Karnataka may not be best for Nano - DHARWAD

Abhirr VP and Varun Kumar / CNN-IBN

Published on Thu, Sep 18, 2008 at 21:42,

MADE IN KARNATAKA? Karnataka joins the list of states who have invited Tatas to a open the Nano plant.

Bangalore The Karnataka government on Thursday offered a 1000 acres of land to Tata motors to set up a plant in Dharwad. Although it may look like a win win situation for both - Tata Motors as well as the Karnataka govt, there are drawbacks which Tatas would have to face if they decide to open the Tata Nano plant in Dharwad.

The Tatas own a Telcon Plant in Dharwad and if things go the Karnataka govt's way then the Nano could be its new neighbor. Chief minister Yeddyurappa sent Tata motors an open invitation to set up a 1000 acre plant.

"I just met Tata Motor's executives and their Dharwad unit will be operational within a month. I've offered them to shift to Dharwad if they want to from West Bengal and I offered them all assistance. Now the decision is left to them," said Karnataka Chief Minister B S Yeddyurappa.

With Yediyurappa going all out to make sure that the Tata's get their plant in Dharwad, it seems to be a win win situation for both. The Tata's get a plant for the Nano and for Yediyurappa they get investment in northern Karnataka.

What makes the Dharwad plant an attractive option for Tatas?

  • Dharwad is close to Pune which is the manufacturing headquarter of Tatas.
  • The presence of Tata's existing plant for its Marco polo bus unit is another plus point.
  • Vendor parks for Tata's commercial vehicles have set up base in Dharwad. Also vendors of Toyota in Bangalore and Tamil Nadu are close by.
  • South India constitutes almost 30 per cent of the passenger car market.

However, there are drawbacks which the Tatas will have to consider as well.

  • The Tatas will have to start from scratch in Dharwad as most of the technology used in the Marco polo plant cannot be used to manufacture the Nano.
  • Regular power supply in Northern Karnataka is a problem.
  • Finally the additional investments in Dharwad may push the Nano USP which is it's price beyond Rs1 lakh.
  • The final answer on whether or not the Nano will be produced in Karnataka, will be known in the next two months.

Tatas would carefully have to weigh their options before deciding to open the Tata Nano plant in Dharwad.

Karnataka offers 1000 acres land for Nano

Karnataka offers 1000 acres land for Nano

CNN-IBN

Published on Thu, Sep 18, 2008 at 12:13

WELCOME TO TATA: Chief Minister Yedyurappa briefs the media on his talks with Tata Motors officials.

Bangalore/ New Delhi: The Karnataka government has offered 1000 acres for the Nano car project and "incentives", Tata Motors Managing Director Ravi Kant said on Thursday.

Kant announced this after meeting Karnataka Chief Minister B S Yedyurappa in Bangalore on Thursday morning. The Karnataka government has offered land for the Nano factory in the north Karnataka district of Dharwad.

The Tata group already has a 800-acre manufacturing unit at Belur on the outskirts of Dharwad city where it makes the low-floor Marco Polo buses.

The twin cities of Hubli-Dharwad have an all-season airport, which has direct flights to Bangalore and Mumbai and they are near ports. There are at least 20 engineering colleges in and around Dharwad.

Speaking to CNN-IBN, Yedyurappa said Tata Motors were “very receptive” to his suggestion that they manufacture then Nano in Dharwad. “I told Tatas to come to Dharwad. Hopefully they will take a decision in two months,” he said.

Yedyurappa said he had promised the company there would be no dharnas or violent protests against them, as the state’s people want an industrial revolution.

The company was to set up a factory to manufacture the Nano in Singur, West Bengal, but suspended work at the plant on September 2 saying it feared the security of its employees who were manhandled and threatened by protesters opposed to 'forcible acquisition of farmland' for the project.

The talks between the Karnataka government and Tata Motors were held after the West Bengal government clearly told Trinamool Congress chief Mamata Banerjee on Wednesday that it cannot give more land from the factory area to farmers.

Mamata has threatened a fresh agitation if the government does not agree to return the 300 acres inside the Nano plant. The Bengal government says it can allot 70 acres.

Mamata is expected to announce her future course of action after meeting West Bengal Governor Gopal Krishna Gandhi on Friday.

Kant said, "We have not taken any decision (on relocating from Singur). We will consult our chairman Ratan Tata."

(With inputs from IANS)