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Bengal red flags make Uttarakhand roll out the red carpet for Tatas

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  • Chief Minister Buddhadeb Bhattacharjee may be working overtime to ensure that the Tatas do not pull out their Nano factory from West Bengal. But after Ratan Tata’s enough-is-enough warning yesterday, several states are lining up with a red carpet in case Mamata Banerjee has her way. Maharashtra Chief Minister Vilasrao Deshmukh welcomed him today but Uttarakhand is working hard to be first in that line.

    The Tata Motors plant in Pantnagar that makes its Ace mini-truck is spread over 1,100 acres and, for long, the Tatas’ demand for another 200 acres has been hanging fire. Yesterday itself, when Kolkata saw an exasperated Tata, Uttarakhand Chief Minister B C Khanduri sent “special orders to resolve all outstanding issues with the Tatas within a week,” said P C Sharma, the state’s Principal Secretary, Industries. On the Nano factory, Sharma said: “No official talks have been held but a dialogue is on.”

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    “The 200 acres that Tatas want is with the G B Pant Agricultural University. Within a week, the Tatas will be able to get that extra land as well and the CM has ordered it be sorted out along with any other problems they may be facing here. We are in dialogue with them and will do all we can to meet their requirements”, said Sharma.

    Almost 1,400 km from Singur, this region promises unmatchable taxbreaks, the cheapest electricity in the country, a national highway (NH-87) running right along, an airstrip as a close neighbour. Pantnagar, known earlier for nothing more than its agricultural university, is today home to over 400 industries and Rs 8,000 crore in investment.

    “It’s the automobile hub near Rudrapur and Tata Nano is quite likely to come here simply because they already have a huge establishment here and will get the benefits of the Central Industrial Package (CIP) available only for Uttarakhand and Himachal Pradesh,” says Sharma.

    Owing to the CIP, the state, officials said, has an industry investment over Rs 50,000 crore at present with industrial estates like the one in Pantnagar spreading out in nearby Sitarganj, Kashipur and Haridwar.

    Chief Minister Khanduri prefers to watch and wait as the Singur controversy plays out. “Tatas already have a plant here and we are already offering big concessions. We will see when they talk to us on Nano what can be done”, he told The Sunday Express.

    According to Kunal Sharma, MD of the State Infrastructure & Industrial Development Corporation of Uttaranchal (SIDCUL) which coordinates all industry activities for the state, the Tatas were given land at Rs 150 per square feet against the market rate of Rs 2,500 per square feet to help establish their 1100 acre plant which currently churns out some 2,25,000 Ace trucks per annum.

    Added to this is power supply at some Rs 2.50 per unit, the lowest in the country, say officials. Then there is the promise of 100 per cent excise holiday for all companies that start production before March 2010 and an income tax holiday for five years. That coupled with peace is what the Uttarakhand government is banking on to woo Tata.

    “Pantnagar has that locational advantage which could work wonders for the Nano. Markets like UP, Punjab, Delhi — all of North India is very accessible,” said Sharma.

    A look at the Tata plant here and you know why the state is so confident. Situated right beside NH 87, over 200 km off New Delhi and some 300 km away from Dehradun, it’s right next to Pantnagar Industrial Estate’s A list: from Dabur to Ashok Leyland, Nestle, Britannia, Parle, Honda, Voltas, Kirloskar, Escorts, Jindal among others.


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