Updates on Land Eviction in West Bengal: Singur land on a platter for Tatas?

According To Report, Company To Pay Just Rs 20 Cr, Only After Five Years

Times Of India
Wednesday, October 11, 2006

Kolkata: Fresh questions have been raised about the much talked about Tata Motors project in Singur. The latest controversy relates to the terms and conditions under which West Bengal government is handing over land to the company for its proposed small car factory. The controversy was embarked by a Kolkata-based TV channel report-that Tatas would get the land virtually at a throwaway price. The government said it was an old "wish-list" of the Tatas, but the situation had since changed.

According to the report, the West Bengal Industrial Development Corporation has paid nearly Rs. 140 crore to the land and land reforms department towards compensation for farmers whose lands were vested, but the Tatas will not pay anything for the land initially. The company will pay Rs 20 crore to the government only after five years. Besides, the Tatas had agreed to pay interest at a rate of 0.1% only, the report said. A letter from the Tatas-shown during the telecast-also demanded incentives like concessional rates on power and water.

The state government went into a huddle after the report was aired.

SMALL CAR PROJECT

"Never ask me questions in this manner," CM Buddhadeb Bhattacharjee admonished a newsperson. The CPM headquarters at Alimuddin Street was also evasive. "Industry minister Nirupam Sen will speak on the issue," it was stated. But the controversy would surely be a shot in the arms for opposition protesting against the Tata project. It would also substantiate the charge of some Left Front partners that they had been kept in the dark of the details of the project.

It was in the evening that the government finally came out with a statement, with Sen issued a partial denial. Bhattacharjee later said the Tatas were not a group that would make demands which were impossible to meet.

"We are not handing over the land for free. We are leasing it out. The letter shown by the TV channel is an old one. It was the Tatas wish-list when they were planning to take the land in Kharagpur. The situation has changed now. They have not submitted a new list and negotiations are on," Sen said.

"One must realize that we had to compete with other states over this project. We will hand over the land to the Tatas on concessional terms. There will be other incentives. But these are effective for other industries. But these are effective for other industries as well."