Clashes over farming land in Singur are far from being over. Tata Motors has been constantly facing problems ever since the world's cheapest car has been launched at the Delhi Auto Expo earlier this year. Tata had promised to roll out world's cheapest car by October this year but the journey since its launch had been everything but smooth. Tata Motors had been fighting constantly to keep up with the deadline as well as keep the costs under control.
Now the clashes from the local people have intensified in Singur and Tata Motors is facing land dispute which may compel it to move the Nano plant from the State of West Bengal to avoid the protests.
Ratan Tata, Chairman, Tata Motors, told reporters that the company has already invested $346 million (Rs. 15 billion) in setting up the plant but the cost shall not prevent it from relocating to safer states.
Tata Motors has already witnessed a drop in sales in the month of July and it needs Nano to boost up its sales figures. Sales have dropped to nearly all the auto makers in the past months owing to rising inflation and 7 year high interest rates. August 24 shall be a day of churning events as Trinamool Congress, a political party in West Bengal, threatens to escalate the protests that day. Employees are already working under tremendous pressure as the local people are refusing to accept compensation and continue to ask for their piece of land.
