GM Dibyendu Barua Backs Tata Motors

Unless you own ADRs in Tata Motors (part of the multinational conglomerate run by the Tata family out of India), you probably won't be familiar with this story. I own some shares in TTM, so I've been following closely the development of the $2,500 car (plus $300 value-added tax in India) called the Nano, designed specifically to appeal to the growing Indian middle class by providing an economical, small but roomy and efficient automobile that can handle the local roads. The Nano, which debuted at an international car show in January to rave reviews, has been awaited with eager anticipation by the buying public in India. Alas, the gigantic factory that Tata undertook to build in India has run into trouble and is behind schedule and, in fact, Tata has now said it it considering walking away from the project entirely because of intense local opposition stirred up by outside organizers. So far, Tata has invested some $330 million USD in the project and approximately 800 local people are working on/at the facility. Relocating production of the Nano to another state would delay it's commercial debut by at least a year. There are two prongs to the objections of the West Bengal objectors: the first is that local farmers who had land confiscated or condemned for the factory complex claim they did not want to sell but were forced to sell, or they were not adequately compensated for their acres, or both; the second is that some locals and some outside protestors who have taken up the cause, don't want ANY economic development of any kind whatsoever to take place in their state, they want things to stay the same way they've always been. It is a compelling story of the clash between the past and the present/future, the kind of story that went on in Europe beginning some 400 years ago and in America some 300 years ago, the clash between an agrarian way of life and the forces of industrialization and development. In India, it's being played out over the Nano factory in West Bengal and no doubt in hundreds of other small villages and towns all across India - and in China, too. Of course, in China, the protestors would have all long since been arrested and shipped off to various work camps for 20 years (those who weren't killed by local police, that is). By all accounts, the factory is a 21st century model of efficiency and economies of scale, with factories of parts suppliers to have been built along-side the massive Nano manufactory buildings, and ultimately would have supplied 10,000 to 15,000 local jobs. The protests started at the same time as construction of the Tata facilities did in 2007. But in recent days, the highway around the facility has been blocked by about 5,000 protesters throwing rocks at cars and buses, intimidating Tata workers and outside reporters alike. Will Tata really throw in the towel in West Bengal and walk away from its investment? Press reports indicate that leaders within the local Communist-party controlled government want Tata to stay, and indeed, realize the importance of moving forward with economic development while states all around West Bengal are eagerly pursuing the benefits of economic development for their citizens. West Bengal has been left behind, so to speak. At the same time, it appears that the protests have paralyzed the local government from doing anything except providing some police to guard the perimeter of the Tata facility in an attempt to quell any excessive actions by the protesting crowds. If any kind of forum is being provided by the local government for the protesters to address their grievances, I haven't read about it. I also haven't read anything about what the Indian national government is doing, if anything, to mediate the situation. It is against this background that I saw today's article, and wanted to publish it here, because it provides a glimpse into what people other than the protesters and Tata officials are thinking about what's been going on. With the great surge of popularity of chess in India and the success of its chessplayers on the international scene, will Dibyendu's comments have an affect? From The Hindu.com Chess hero Dibyendu Barua bats for Nano September 4, 2008 Kolkata (PTI): After cricketer Sourav Ganguly, chess Grand Master Dibyendu Barua on Thursday appealed to the intelligentsia of West Bengal to raise their voices in support of the Nano small car project. "Whatever is happening in Bengal for the past few days is a shame on us. What has happened to the Bengali intelligentsia? Can't we see that if we still keep a mum, we will end up losing a project like Nano? Is that what we want?" he asked. He said it was high time that people of the state realise that the Nano car project will usher in a positive era for the industry in West Bengal. "We all know that West Bengal is lagging behind in the field of industry; we do not have enough manufacturing industry which generates most of the job opportunities. "Tata is such a brand which is not only known for its credibility and corporate social responsibilities, but it has a magnetic force that would attract many more industrialists in West Bengal," Baru said. Giving en example of Jamshedpur which turned from an unknown place to a model town, he said the Tatas brought in a sea-change wherever they set up factories. "So, I would earnestly appeal to all of you to please come forward, raise your voice and raise it for good reasons. Save Nano factory. Save our future," he said.