TATA'S NANO PROJECT IN SINGUR
AND IT'S AFTER-AFFECTS
PREAMBLE :
At last the extremely high-sounding Nano project of Tata in Singur
(West Bengal, India) had been called off. Various parties are now
accusing one another on the basis of their loss of selfish interests
and judgements. Considering the big talks of the entrepreneur,
expectations of the future consumers of cars, aspirations of the
land-dependent people, hot debates of political parties, unbelievable
love of the ruling party (renowned for strangulating the industries of
West Bengal) for industrialization, controversial comments and
statements by the politicians and technical experts etc. the
Tata-Nano-Singur is by far the most renowned "incident" of West Bengal
since 1947. The flow of discussion regarding the failure of this
project at present flows in the following two major streams :
Stream One : TNS (Tata-Nano-Singur) failure would stop the process of
industrialization in West Bengal.
Stream Two : TNS (Tata-Nano-Singur) failure has saved the country
from great curse.
We shall endeavour to arrive at a conclusion on the basis of analyses.
Our discussion will take place on two bases : (01) Information
published in medias and (02) Common sense. We know that this is not
the age when all persons speak the truth. On the other hand telling
lies or twisting the fact is now the common practice and the same has
been widely accepted by those in business. Thus in spite of whatever
our leaders, businessmen or medias preach, intelligent men can pick up
the truth. This article is supposed to be read by intelligent people.
In this article we shall mention the information obtained from various
sources as usual, while those synthesized by intelligence will be
denoted by a legend IA (Intelligent Assessment ).
WHAT WERE UNUSUAL ?
In the TNS project there happened many unusual things. In order to
arrive at the conclusion one need to have a good knowledge of those.
We shall mention and then explain the most important of those
hereunder :
(i) Government's over enthusiasm in the TNS project.
(ii) Abnormalities in Tata's project.
GOVERNMENT'S OVER ENTHUSIASM :
It is a matter of common sense that industrialization is extremely
important in the resource-constrained and over-populated countries.
When the British left India in 1947, West Bengal was quite rich in
industries. After they left, the elected governments patronized the
same and those flourished. This trend discontinued as soon as the
CPI(M) came to power. World has witnessed how the cadres of these
parties compelled or forced the owners of the industries to close
those. This was natural because :
(a) The party came to power in the name of safeguarding the interests
of the workers,
(b) The party-cadres found it a good business to collect booties from
the owners of the industries,
(c) The government endorsed the same such that the cadres can ensure
their votes in the following elections.
Once in power, the party continued for over three decades. This is
most unusual because this government does not have any record of
bright achievements and in democratic elections the voters are
supposed to change any bad party from power. IA (Intelligent
Assessment) says, it happened so because the party used their cadres
to compel the voters to vote for them. However, neither of the
government, their party-cadres and the panicked voters would say "yes"
to this analysis, and the reason is clear.
Even though the government realized the importance of industries for
the progress of the country, they could not help because by their
consideration, the cadres' satisfaction was more important than the
income of the industries. In order to keep the cadres satisfied the
government did many tings including the following :
(a) They retained god believing and puja system in the country, even
though these are not permitted in the communist system. IA
(Intelligent Assessment) says, it enabled their cadres to collect easy
money from the common people.
(b) They introduced mass-scale liquor supply throughout the country,
because their cadres love it.
(c) The cadres were allowed to make money by grabbing and then selling
the properties abandoned by the industrialists.
(d) The cadres were allowed to make money in all possible unlawful ways.
The contingent of satisfied cadres has enabled the party to remain in
power for such a long time.
In such a context the government has expressed over-enthusiasm in
industrialization. The question is, has any basic change take place in
the recent years ? Has the mentality of the cadres changed such that
the investors may feel assured to establish industries ? We know the
answer, which is "no". In such a context what may be the objective of
the over-enthusiasm shown by the government for industrialization ? IA
(Intelligent Assessment ) says, the prime objective of the government
is to collect money for the party (not the government) such that they
can meet the needs of their cadres. In this project also they arranged
to fulfil the same objective under the slogan of "industrialization".
WILLFUL DEVIATIONS IN THE PROJECT SUBMITTED BY TATA :
As an expanding private company Tata had no reason to have known the
above mentioned weakness of the government of West Bengal, where a
capitalistic country was endeavouring with the obsolete concept of so
called communism. Like an intelligent, or more correctly, shrewd
businessman they chalked out a program in which they could gain their
financial goal.
Usually a car assembly plant necessarily includes the following
essential items :
(i) Plants for manufacturing the body,
(ii) Plants for the assemblage of parts for the vehicle,
(iii) Plants for painting and finishing and
(iv) Sheds for preserving the procured spare parts from local and
foreign sources.
No developed country ever allows the establishment of allied
industries in the same premises, and there are genuine reasons for it.
Some of these are :
(a) In this age standard cars can be manufactured only with genuine
parts/components produced in their highly sophisticated manufacturing
plants (in most cases such plants are inaccessible to others)
scattered all over the globe, and
(b) Manufacturing of parts/components by various companies in the
same compound creates excellent scope of averting taxes by the
parts/components manufacturing companies.
(c) Accommodating all the ancillary industries under the
ownership of one company is termed as vertical industry and such type
of industries are highly discouraged in the developed countries for
their ignorance of others' interests.
In fact such industries are against the principle of "capitalism",
where capitalism stresses on utilizing only the factors (men and
equipments) and processes (technology) of production for producing the
best quality products at the highest rate. Needless to mention that in
this age the production of the component parts of a vehicle in Tata's
compound at Singur can in no way ensure the production of a standard
car.
Undeveloped countries at times are compelled to swallow the proposal
of "principal+ancillary industries" given by powerful multi-national
companies, because of their 'inability' to bargain. Also the
autocratic countries may do the same in the vested interest of their
dictators. It is strange that the democratic government of an
enlightened state like West Bengal could be befooled to swallow such a
proposal. The cause of swallowing may be understood from there
extra-ordinary leniency in taxation and extremely soft loan policy.
The company could apprehend that the clauses in the contract were
shamelessly in their favour and that their publication could arouse
public anger. So they included a clause against declassification of
the same. It may be mentioned that business secrecy act known as
"commercial intelligence" is applicable in case of manufacturing
processes of products. In democracy the government is elected by the
citizens for safeguarding their welfare and to uphold the country's
honour for a limited period of time. There can be absolutely no reason
for such a government to keep the contract signed with a businessman
secret.
GOVRENMENT'S ACTION IN THE ABNORMAL SITUATION :
In the abnormal situation where the interest of the government was to
collect 'food' for the cadres, the government signed a contract which
were unethical and unlawful because of the following reasons ;
(a) In case the suppliers of parts/components were to supply their
products, the government could get the various related taxes. But when
Tata shows those as their ancillary companies they not only come under
tax remission, but also under privileges enjoyed by Tata.
(b) By every likelihood Tata was to enjoy part of the financial
privileges to have been enjoyed by the ancillary companies.
(c) It was the convention that like any other private enterprise Tata
would procure land for their industry. In this case the role of the
government was to (i) help them in doing it as per rules prevailing in
the country and (ii) to watch if the interests of the citizens are not
harmed. In place of doing that what the government did will be
considered "extremely shameful" in the history of this country.
THE SHAMEFUL ACT :
The British Government introduced the law of "acquisition of private
land for public interest" in the 18th century. Even this colonial
government did not apply that rule excepting during the time of wars.
But the so-called "democratic government" of West Bengal applied the
same in order to acquire people's lands at government rate in the
so-called "public interest". The future generations of this country
may go for solving the mystery, "why and how could the CPI(M)
government consider Tata's interest as public interest. The net
outcome of the government's act was :
(a) Tata got huge land at extremely low price and
(b) If the project was successful it could pave the way for any
future governments to acquire valuable properties of the citizens and
then to give the same to the relatives of the ministers, cadres of the
party or to large enterprises on the plea that they were doing these
in the name of "public interest".
By this consideration, the failure of Singur project may be considered
as a blessing for the present and future citizens of West Bengal.
BIRTH AND DEATH OF THE ONE-LAKHI CONCEPT :
When Tata cold discover that they could have enormous gains from this
project mainly due to (a) Less cost for land, (b) Collection from the
ancillary firms and (c) Government's benevolence, all of which were to
act as subsides, they could profitably sell their cars at Rupees One
lakh each. Without such subsides, however, no standard company can
expect to sell such type of cars at less than two lakhs. While its
birth was calculated on dishonest intentions, its death has saved the
citizens of Kolkata and adjoining areas from the curse of over
jamming, accidents and pollution.
ACCUSITION BY TATA'S REPRESENTATIVE :
After the TNS project was declared aborted, Mr. Ratan Tata, the
representative of Tata in a press conference accused Mrs. Mamata
Banerjee of Trinomul. Among others he mentioned that someone with big
money was active behind Mrs. Banerjee. Probably he intended to say
that his rival motor companies extended financial assistance to their
rival parties. IA (Intelligence Assessment) says, he might be correct.
Let the name of this company is 'X'. We can say, 'X' was doing the
same for the sake of their business. In the present day companies get
their schemes passed and intentions fulfilled through bribes. This is
now an open secret. Tata applied the same trick in which they arranged
to deprive the government from huge taxes and the land owners from due
price. So, they do not have the moral right to say anything against
another company that adopts similar trick.
COMPARISON BETWEEN THE ROLES OF TATA AND 'X' :
If the X company was not there, then by every likelihood Mrs.
Banerjee's mission would not have come out successful. A single lady
cannot have the resources to fight against the ploy of a gigantic
company like Tata. However, the great difference between the roles of
these two is :
Tata's intention was earning profit, which they endeavored to do by :
(a) Bribing the government,
(b) Depriving the land owners with less price (as fixed by the government),
(c) Depriving the non-owner people dependent on those lands,
(d) Depriving the government from huge taxes and finally,
(e) Helping the government to introduce and enact a jungle rule by
which would get the government could to acquire anybody's land anytime
in the name of public interest.
On the other hand, X's intention was earning profit by eliminating or
defeating a shrewd and highly dishonest competitor. Coincidentally
their mission served a great blessing for the people of West Bengal.
It sent a strong message to the Government of West Bengal against the
use of the jungle rule of acquiring citizen's land at anytime in the
name of public interest.
In future Tata's role will be known as "associated conspirator", while
that of the unknown and unseen X company will be admired as a great
blessing.
TEACHINGS FROM SINGUR :
After Tana's Nano Project at Singur has been abandoned various
authorities and agents are expressing differing views about the future
of such type of industrialization in West Bengal. The two major types
of comments are : (01) It would stop industrialization in West Bengal
and (02) It would have no affect on future industrialization of the
country. Needless to mention that CPI(M), the ruling party is the
chief advocator of the first comment, by which they would endeavor to
keep Mrs. Momota Banerjee under pressure.
As a matter of fact whether industrialization would take place in West
Bengal on a lot of factors, which are relevant to Tata's project. It
is known to all that the present government has strangulated most of
the industries of West Bengal during their regime and that they have
done it through their policies. They shout for giving more management
right and financial benefit to the workers, who, as per policy of the
government work as their cadres. The government does not have any
policy, provision or program for safeguarding the interest of the
owners. In such a situation the owners have been compelled to close
their establishments. Now the question is, has there been any change
in the attitude and policy of the government or the party ever since
they came to power ? The answer is no. The counter arguments may be :
"Why then big companies like Tata are coming for such type of
industrialization ?"
Careful observation might reveal that the entrepreneurs who are coming
now have tow objectives :
(01) To avoid labor-based industries, such that the
"popular-cum-suicidal" labor policy of the government cannot affect
their industries.
(02) To make profit from other sources. We have seen how Tata planned
for huge gains from land, bank loan, government taxes, manufacturers
of component parts etc.
After one carefully realizes the above facts, one has to comment that
Tata's recent action would not have any significant affect on the
country's industrialization. In this case the facts are :
(01) Industrialization in West Bengal shall initiate as soon as the
present government and their party would change their current attitude
and policies, or a government with amicable attitude would come to
power, and
(02) In future no industry with Tata-type attitude (i.e. making
profit from other sources) would express interest to invest in this
sector n his country.
WHAT NOW ?
After the failure of the Tata to establish motor company at Singur,
the burning question is, how can the abandoned properties be
appropriately utilized and the affected parties, compensated. The
affected parties are (i) The country, (ii) Tata and (iii) The land
owners. These problems can be solved in the following ways :
(i) The country : If Tata could market their one-lakhi cars,
definitely the middle-income people West Bengal would have been their
most prospective owners. It is less probable that persons capable of
making bigger purchases would at all buy the car with this quality and
standard. By that way the narrow roads of West Bengal should have been
further jammed with cars, thus increasing the countries' dependence on
fuel, pollution, traffic jam, vehicular accidents and jobless
situation of persons engaged in the public transport sector. Now the
government should take up a program of manufacturing better type of
vehicles for the interest of the country.
The government's 'weakness' for Tata is evident from their over
benevolence for this private organization and signing of the 'secret'
contract. Now they should rise above the meanness, endeavor to
understand the technicalities of the project and ask Tata to establish
their plants without those so-called ancillary industries.
(ii) Tata : Tata should be given the offer or directives to
manufacturer better quality vehicles, more suitable to the people,
environment and economy of West Bengal. In case Tata does not accept
the offer, they may be asked to pay all government dues and those
payable to the people and leave the place. After that the government
give the offer to other companies.
(iv) The landowner : When the government would understand that the so
called ancillary industry was nothing but Tata s tactics of additional
profit by depriving the government from due taxes and creating
privileges for the manufacturers of spare parts. Once the government
can realize this fact it will be no problem to find out 400 acres of
land for the unwilling land owners.
CONCLUSION :
Mr. Ratan Tata once mentioned Nano as the Peoples' car. He was wrong.
In the present perspective of West Bengal, where the roads are narrow,
environment is already polluted, fuel needs to be imported at great
pains etc. a light-body car like Nano cannot be treated as the
peoples' car. On the other hand, the peoples car (vehicle) is the one
that creates less pollution, carries more people at less cost and does
not need imported fuel.
So, the government may decide for establishing a plant for assembling
such type of vehicles. The plant necessarily would include assembly
and painting plants and storage shades. The vehicle to be manufactured
may be "Bio-diesel driven double-decker bus". Double-decker bus can
carry more passengers per trip in the same width of road, and West
Bengal is capable of producing huge quantity of Bio-diesel from
Jetropa plants. The government can make open call for the
entrepreneurs to establish such a plant, or take up the program by
themselves.
Finding out weapons of debate to overcome the opponent is completely
different from the ruling of a country with the objective of the
welfare of the entire people and the land. Communists are quite
renowned for their debating and arguing capability. However, they can
do something better for the country only if they forget that tendency
and invest their brains and energies in understanding the problems and
finding out the best solution. Let us see, not Nano, but bio-diesel
driven double-decker buses to rightly serve the purpose of the common
people.
PROF. BIJON B. SARMA, HEAD, ARCHITECTURE DISCIPLINE, KHULNA
UNIVERSITY, BANGLADESH.
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