Tata Motors’ Singur Case (Nano Controversy)
I have taken the case on Tata Motors Ltd. The case was all about on the Tata Nano Singur Controversy. This controversy refers to the Tata’s Nano Factory at Singur in Hooghly district in West Bengal, India. Since Tata Motors Started constructing the factory over there in Singur, the small place comes into the media worldwide. Tata Motors started this factory to manufacture 25000 cars firstly. The plans of Tata Motors were that Nano will come out from the factory by 2008 for rolling out the roads. Tata Motors Ltd. is the largest Indian automobile company having the revenues of USD 20 billion in 2009-10. Tata Motors is the leader in the manufacturing of commercial vehicles. It is among the top three in the passenger car and also in mid car segment. The organization stands at number four in truck manufacturing worldwide and stands at number two in bus manufacturing. The total workforce of Tata Motors worldwide is near about 24000 employees. Tata Motors established in 1945, Tata Motors is present across the India and even world wide as they have acquired the two brands of Ford Motors. The total quantity of the vehicles which rolling out on Indian roads by Tata Motors are near about 6 million. The company has its manufacturing units all across the India i.e. Jamshedpur, Pune, Lucknow, Pantnagar and Karnataka. In 2005, Tata Motors set the alliance with Fiat Motors at Ranjangaon, Maharashtra to produce bith Fiat and Tata cars. The company is also establishing the new manufacturing unit at Sanand( Gujrat). The company has a good dealership network in India. Abstract
The controversy of Tata Motors was due to Land Acquisition at Singur for its Nano Project 4 years back. The Tata Motors have the dream to run a Rs. 1 lakh car on Indian roads. In 2006, the CM of West Bengal Mr. Bhuddadeb Bhattacharjee’s vision was to make the West Bengal an industrialized state so that it can compare to other states in India in industrialization. As the land in Singur was not so fruitful, so the government had decided to give it to Tata Motors for the Nano Project, so that the state will get benefit out of it. But the opposition had the continuously eye on this issue, they do not want that the poor farmers’ land will be taken from them under the government pressure. The political factors come into the picture against this project at Singur. The opposition was playing with the emotions of the farmers. The opposition put the arguments that the land is scarce resource in the West Bengal. The opposition does not want that the project will start here and it will end up at its scheduled time. The opposition got successful in its operations for the Tata Motors and finally Supreme Court asked the Ratan Tata to chuck out their plant from the Singur. The main person behind all this was Ms. Mamta Benerjee, she was adding fuel to the fire always at the time of issue. So, at the end Tata Motors have stopped its operations and went ahead to the place in Gujrat. Comparative Analysis
The comparative analysis can be defined in terms of issues of the case and their depth analysis from the point of view of stakeholders. It can be explain in terms of some external forces which play important role in this issue as given below:
First of all in this case, legal aspects in the land acquisition by Tata at Singur come into the play. Due to globalization, most of the developing countries want to have the shift from import substitution based strategy for the land acquisition. SEZ i.e. special economic zones are the geographical regions which have the economic laws more liberal than the economic laws in the whole country. By offering the all these privileged terms from the SEZ to the company, it will attract the investment from the investors, foreign exchange, boost the employment and improving the infrastructure facilities which will help in the growth of the particular location.