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Tata Nano Singur controversy

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Controversy over a proposed Tata Motors auto factory in West Bengal, India
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TheTata Nano Singur controversy was a controversy generated by land acquisition for a proposedTata Motors automobile factory atSingur inHooghly district,West Bengal, India. The factory would have been used to build the compact carTata Nano.

Theerstwhile state government of West Bengal created the controversy by citing theLand Acquisition Act, 1894 rule to conduct aneminent domain takeover of 997 acres (4.03 km2) of farmland on which Tata Motors was supposed to build its factory.[1] The rule is meant for public improvement projects, and the state government wanted Tata to build in its state. The project was opposed by activists and opposition parties in West Bengal.

Leadership positions within theSingur Krishi Jami Raksha Committee (SKJRC - The Committee to Save the Farmland of Singur) were held by the locally dominantMahishya community, who are thechasjami malik (landholder) or owner-cultivators of the region.[2][3]

Singur plant selection and protests

[edit]

Singur was chosen by the company among six sites offered by thestate government. The project faced massive opposition from displacedfarmers. The unwillingfarmers were given political support byWest Bengal's then opposition leaderMamata Banerjee. Banerjee's "Save Farmland" movement was supported byenvironmental activists likeMedha Patkar, Anuradha Talwar andArundhati Roy. Banerjee's movement against displacement of farmers was also supported by severalKolkata basedintellectuals likeAparna Sen,Kaushik Sen,Shaonli Mitra,Mahasweta Devi,Kabir Suman,Miratun Nehar andSubhaprasanna. Leftist activists also shared the platform with Banerjee'sTrinamool Congress. The Tatas finally decided to move out of Singur on 3 October 2008.Ratan Tata blamed agitation by Banerjee and her supporters for the pullout decision. On 7 October 2008, the Tatas announced that they would be setting up theTata Nano plant inSanand,Gujarat.

Background

[edit]

The rapid rise in the population ofWest Bengal has not been accompanied by significant economic growth. Key indicators such as unemployment rates, poverty rates, infant mortality rates, job growth rates, per capita income, mobile phone penetration rates lag the more industrialized states of India. Local politicians gained power by promising agricultural land to landless farmers, but given West Bengal's population density, the land-holdings are small and the yields are insufficient to sustain poor families. While the shift from agriculture to industrial jobs requires re-training, given India's economic growth, it provides an opportunity for earning higher income.

Several other states had offered land toTata Motors for the project.

The people staying in the proposed land were forced to evacuate by the government. The compensation given was considered inadequate and the new housing facilities offered were delayed. This led to the protest of the peasants backed by opposition political parties.

The company had made substantial promises. According to their claims, Singur would become a mini-auto city and approximately 70 vendors would set up shop along with the factory. The total investment planned is to the tune of Rs 1,000 crore.[4] The project had, however, generated controversy right from the start, particularly on the question of state acquisition of fertile agricultural land for private enterprise.

The land acquisition controversy

[edit]

On 23 September 2008, Tatas decided to leaveSingur inWest Bengal, the decision is reported to have been made by theTata management and theWest Bengal government had been informed. On 3 October it became official thatTATA will leaveSingur (WB) whenRatan Tata announced it in apress conference inKolkata.

While the ruling party has gone all out[5]for acquisition of 997 acres (4.03 km2)[1] ofmulti-crop land required for thecar factory, questions have been raised about the party forcible acquisition which was made under the colonialLand Acquisition Act of 1894.[1] Others say the provisions of this act were allegedly not been met.[6]

The law has provisions for state taking over privately held land for public purposes but not for developing private businesses. The illegality of the acquisition has been substantially conceded by theKolkata High Court.

TheTata Motors site is the most fertile one in the whole of theSingur, and the Singur block, in turn, is among the most highly fertile inWest Bengal. Consequently, almost the entire local population depends on agriculture with approximately 15000 making their livelihood directly from it. With the number of direct jobs to be created no more than about 1,000, many of which are expected to go to outsiders, the local populace felt threatened for theirlivelihood.[7]Environmental degradation is also feared.

Chief protesters include the opposition parties spearheaded by theTrinamool Congress underMamata Banerjee andSocialist Unity Centre of India. The movement has received widespread support fromcivil rights andhuman rights groups, legal bodies,social activists likeMedha Patkar and Anuradha Talwar,Booker Prize-winning authorArundhati Roy andMagsaysay andJnanpith Award-winning authorMahasweta Devi.[8] Other intellectuals, writers like the poet Ruchit Shah, artists likeSubhaprasanna, theatre and film personalities likeShaoli Mitra,Aparna Sen etc. have pitched in. The state police force has been used to restrict their access to the area.[9] TheNobel LaureateAmartya Sen supported the idea of factory but he however opposed forcible acquisition of land.[10]

Preliminary surveys by officials of the state and Tata Motors faced protests, and manhandling on one occasion, from the villagers organized under the Save Singur Farmland Committee with Trinamool Congress forming its chief component.[11] It is reported that Naxalite elements hold sway over the direction the agitation takes and theTrinamool Congress chiefMamata Banerjee takes no decisions without consulting them.[12]

Thestate government imposed the prohibitorySection 144 of theIndian Penal Code for initially a month and then extended it indefinitely. The imposition has been declared illegal by theKolkata High Court[13]

Whilelandlesspeasants andsharecroppers fear losing out entirely, sections of the locals, particularly those owing allegiance to the CPI(M) have welcomed the factory. These count chiefly among the owners of bigger portions of the land even as discrimination in the compensation has been alleged.[14]

A section of those promised jobs at the factory have boycotted classes while training in protest against the alleged going back on the promise.[15]

In the 2011 state assembly elections, while the sitting Trinamool Congress MLA, Rabindranath Bhattacharya retained theSingur seat,Becharam Manna, the convener of Krishi Jami Raksha Samiti, won the adjoiningHaripal seat.[16][17]

Fencing off the land

[edit]

The land earmarked for the project was taken control of by the state administration amidst protests and fencing off commenced on 1 December 2006. Mamata Banerjee, who was prevented from entering Singur by the state police, called a statewidebandh in protest while legislators belonging to her party turned violent in the legislative assembly causing damage to furniture.[1] Later, she went on a 26-dayhunger strike[2]. During this period she presented affidavits of farmers apparently unwilling to part with their land.[18] On 4 December, Banerjee began the historic 26-day hunger strike in Kolkata protesting the forcible acquisition of farmland by the government. The then-PresidentA. P. J. Abdul Kalam, who was concerned about her health, spoke to the then-Prime MinisterManmohan Singh to resolve the issue. Kalam also appealed to Ms Banerjee to withdraw her fast as "life is precious". A letter from Manmohan Singh was faxed toGopalkrishna Gandhi, the then-Governor of West Bengal, and then it was immediately delivered to Mamata. After receiving the letter Mamata finally broke her fast at midnight on 29 December.[19][20][21][22]

The fenced off area has been regularly guarded, besides large contingents of policemen, by cadres of the CPI(M) party. They were accused of the multiple rape followed by burning to death of teenage villagerTapasi Malik who was active in the protests, on 18 December 2006.[23] Negligence and political interference in the probe into her death have been alleged.[24] Later, CPI(M) activistDebu Malik and based on his statement, CPI(M) zonal committee secretarySuhrid Dutta were arrested by theCentral Bureau of Investigation in connection with the crime.[25][26]

Intermittent attacks by villagers have since continued on the fence. However, continuing agitations against the project appeared to have proved ineffective and a farmer who lost land committed suicide.[27]

On the other hand, the pro-factory villagers siding with the CPI(M) have made accusations against the Naxalite faction of the 'Save Singur Farmland Committee' of threats and violence against them.[28]

Construction of plant

[edit]

Tatas ceremonially initiated the construction of the plant on 21 January 2007.[29] The Tata Group announced on 3 October 2008 that they are pulling out of Singur due to the political unrest and agitation.

Procedural lacunae

[edit]

Other aspects of the process of setting up the factory that had come under severe criticism are the government's secrecy on the details of the deal and the chief minister's furnishing of false information, including in the legislative assemblyVidhan Sabha. In particular, the concessions being given to Tata Motors have not been publicly revealed. The falsehoods of the chief minister chiefly pertain to claims made by him of having acquired 912 acres (3.69 km2)[30] through voluntary consent of the owners without the use of force.

TheKolkata High Court declared the acquisitionprima facie illegal.[31]The air seemed to have cleared somewhat when the High Court ordered the state government to submit correct figures following which anaffidavit but was not satisfied with the result.[32] In an affidavit filed later in June 2007, the government admitted to 30 per cent of the land was acquired from farmers without consent.[33] The affidavit remains unclear on whether the lack of consent is based on insufficiency of the compensation or refusal to sell altogether.[34]

Project relocation to Gujarat

[edit]

On 3 October 2008, after a meeting with West Bengal Chief Minister Buddhadeb Bhattacharjee, Tata Group chairman Ratan Tata announced the decision to relocate the Nano project from Singur, West Bengal, citing ongoing protests and political opposition led by theTrinamool Congress underMamata Banerjee, who called for the return of land to displaced farmers.[35][36]

Following the announcement, theChief Minister of Gujarat,Narendra Modi, invited Tata Motors to establish the plant in the state. Modi reportedly sent a message to Ratan Tata reading "Suswagatham" (meaning "welcome"), to encourage the relocation toGujarat.[37]

Tata Motors subsequently built a new factory inSanand, Gujarat, completing construction in 14 months, compared to the 28 months taken for theSingur facility.[37]

Supreme Court verdict and land restoration

[edit]

On 31 August 2016, theSupreme Court of India set aside the West Bengal government's acquisition of 997 acres of agricultural land in Singur for Tata Motors' Nano project, declaring the acquisition illegal.

The Court directed the state government to take possession of the land and return it to 9,117 landowners. Following the verdict, the West Bengal government reclaimed the land and initiated its redistribution to the original owners.[38][39]

Arbitration and compensation award

[edit]

In early 2017, Tata Motors sought compensation of ₹934 crore from the West Bengal Industrial Development Corporation (WBIDC) for losses incurred after relocating the Nano project to Sanand, Gujarat in 2008, citing sunk costs and accrued interest.[40]

On 30 October 2023, a three-member arbitral tribunal unanimously awarded Tata Motors ₹766 crore (approximately US$103 million) plus 11% annual interest in compensation for its losses related to the abandoned Singur facility. The tribunal found in favour of Tata Motors after reviewing the company’s investment of over ₹1,800 crore in establishing the Singur plant before the project’s cancellation.[40]

See also

[edit]

References

[edit]
  1. ^abcThe Economist 30 August 2008 edition. U.S. Edition. "Nano wars". Page 63.
  2. ^Guha, Ayan (26 September 2022).The Curious Trajectory of Caste in West Bengal Politics: Chronicling Continuity and Change. BRILL. pp. 12–13.ISBN 978-90-04-51456-0.
  3. ^Chandra, Uday; Heierstad, Geir; Nielsen, Kenneth Bo (25 September 2015).The Politics of Caste in West Bengal. Routledge. pp. 125–144.ISBN 978-1-317-41477-3.
  4. ^The Hindu Business Line, 13 December 2006. Thehindubusinessline.com (13 December 2006). Retrieved on 2011-10-09.
  5. ^CPM supports CM and Sen on Singur. Telegraphindia.com (14 October 2006). Retrieved on 2011-10-09.
  6. ^"30% of Singur farmers reject compensation". Archived fromthe original on 30 June 2007.
  7. ^Cover StoryArchived 23 April 2008 at theWayback Machine. Tehelka.com (3 March 2007). Retrieved on 2011-10-09.
  8. ^THE PUBLIC HEARING AND FURTHER INVESTIGATION ON THE STRUGGLE BY THE PEOPLE OF SINGUR. THE FINAL REPORTArchived 2 December 2008 at theWayback Machine. Doccentre.net. 27 October 2006. Retrieved on 9 October 2011.
  9. ^Do you need a visa to enter Bengal?. Timesofindia.indiatimes.com (8 December 2006). Retrieved on 2011-10-09.
  10. ^"The Tribune, Chandigarh, India - Nation".Archived from the original on 26 July 2008. Retrieved4 September 2009.
  11. ^The Indian Express 15 January 2007. Cities.expressindia.com. Retrieved on 9 October 2011.
  12. ^Banerjee doesn't take decisions without Naxal elements' OKArchived 31 October 2010 at theWayback Machine. Expressindia.com (1 September 2008). Retrieved on 2011-10-09.
  13. ^Sec 144 in Singur illegal: HC. Timesofindia.indiatimes.com (15 February 2007). Retrieved on 2011-10-09.
  14. ^Fields of foment – 'We should get a picture of Ratan Tata and do his puja every day'. Telegraphindia.com (10 December 2006). Retrieved on 2011-10-09.
  15. ^Job cry from Tata trainees. Telegraphindia.com (23 June 2007). Retrieved on 2011-10-09.
  16. ^"Haripal".Assembly Elections May 2011 Results. Election Commission of India. Retrieved19 May 2011.[permanent dead link]
  17. ^"Singur".Assembly Elections May 2011 Results. Election Commission of India. Archived fromthe original on 16 May 2011. Retrieved19 May 2011.
  18. ^The Statesman 23 December 2006Archived 29 September 2007 at theWayback Machine
  19. ^"Mamata ends 25-day hunger strike".Hindustan Times. 29 December 2006.
  20. ^"Mamata Banerjee dials protesting farmers, assures TMC's support".The Tribune. 4 December 2020.
  21. ^"West Bengal CM Mamata Banerjee reminds people of her 26-day hunger strike".The Sentinel. 4 December 2020.
  22. ^"Mamata Banerjee remembers Singur hunger strike in context of ongoing farmers protest".The Statesman. 4 December 2020.
  23. ^The Statesman 19 December 2007Archived 29 September 2007 at theWayback Machine
  24. ^The Statesman 22 January 2007Archived 29 September 2007 at theWayback Machine
  25. ^CPM local boss arrested for Singur girl's murder. Indianexpress.com (29 June 2007). Retrieved on 2011-10-09.
  26. ^"CPI(M) man confesses to raping Singur girl".DNA India. 29 June 2007. Retrieved30 November 2021.
  27. ^Land lost, Singur farmer said no to compensation, commits suicide. Indianexpress.com (26 May 2007). Retrieved on 2011-10-09.
  28. ^DNA – India – 'Save Singur' turns sour – Daily News & Analysis. Dnaindia.com (24 January 2007). Retrieved on 2011-10-09.
  29. ^The Telegraph 22 January 2007. Telegraphindia.com (22 January 2007). Retrieved on 2011-10-09.
  30. ^The Indian Express November 24, 2006. cities.expressindia.com. Retrieved on 9 October 2011.[dead link]
  31. ^Calcutta High Court says Singur land acquisition appears illegal -all eyes now on communists in West BengalArchived 1 February 2010 at theWayback Machine. Indiadaily.com. Retrieved on 9 October 2011.
  32. ^"MSN INDIA - Singur: HC asks Bengal Govt to file fresh affidavit". Archived fromthe original on 5 May 2007.
  33. ^IBN 10 June 2007: 30 pc Singur farmers not compensatedArchived 15 July 2007 at theWayback Machine
  34. ^State files Singur affidavit. timesofindia.indiatimes.com. Retrieved on 9 October 2011.
  35. ^"Tata pulls out of Singur, blames Trinamool stir – The Financial Express". www.financialexpress.com. 4 October 2008. Retrieved10 March 2009.
  36. ^"If Tata pulls out, Trinamool will be solely responsible: CM".The Hindu. Chennai, India. 28 September 2008. Archived fromthe original on 30 September 2008. Retrieved10 March 2009.
  37. ^abSupersize Gujarat – Business Today – Business News. Businesstoday.intoday.in (23 January 2011). Retrieved on 2011-10-09.
  38. ^Rajagopal, Krishnadas (31 August 2016)."Return land to Farmers: SC orders West Bengal govt".The Hindu. The Hindu, 31 August 2016. Retrieved8 June 2017.
  39. ^"Bengal to return Singur land to farmers on Sept 14". The Hindu Business Line, 12 September 2016. 12 September 2016. Retrieved8 June 2017.
  40. ^abDutt, Ishita Ayan (30 October 2023)."Tata Motors wins Rs 766 crore plus interest at 11% for losses in Singur".Business Standard.Archived from the original on 12 August 2025. Retrieved12 August 2025.
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