High alert at Singur plant

By Swati Khandelwal from CNBC-TV18

Tata Group's security concerns:

CNBC-TV18 has been trying to speak to the Tata Group. However, right now they are trying hard to ensure that the plant is protected and nobody is going in or coming out. The plant is completely barricaded and nobody is permitted in the plant.

About 80-85% of the plant is complete, in fact, twenty-six Nano 's have already been produced. Considering the stage, Tata Motors's move to set up a plant elsewhere would be a big step. Possibly, Tata Motors will roll out Nano if they shift elsewhere and meet its October launch deadline which is very close. However, the launch from Singur will be difficult if the violence continues.

On positive indications from Mamta Banerjee :

The proposal from Mamta Banerjee offering about 500 acres of land is an indication of at least some sort of a talk that Mamta is trying to initiate. So, we are hoping that the Tata's will come back on this, but we don't know if it will be acceptable to Tata or not. It all depends on the final negotiations. However, apart from the positive indication by Mamta Banerjee, the situation near the plant is absolutely maddening.

There is too much agitation and demonstration. As the day progresses, the entire Durgapur expressway will be blocked by thousands of people, protesting and shouting slogans. In such a situation we don't expect the Tatas to continue work at the plant. Policemen and riot control vans have been deployed, and everything is set up to ensure that there is no violence.

Do Tatas have a 'Plan B'

 

At present, no construction work is happening at the plant. As far as Tata Motor's stand is concerned, they are keeping quiet at this stage after Rata Tata's comment that they may look at exiting Singur. However, one could expect that Tata Motors could not just be banking on Singur, as they already have a back up plan in mind. Sources say that they are already going on a 'Plan B', and most likely it is the Uttaranchal plant at Pant Nagar that Tata is considering. Here they have a huge facility.

 

Sources told CNBC-TV18 that they have been asked to ship components for 150 odd cars. These are essentially the test cars that are expected to be produced from Uttaranchal. Eventually, Tatas will set up an assembly plant there. Vendors are sourcing components there. So maybe they would want to expand that and use that as a base.

 

Most of the state governments are now pitching in and welcoming Tatas to set up their plant. Tatas, as CNBC-TV18 understands from sources, would look at their own facilities and own plants that they have, and maybe roll out Nano from there. Thus, the launch is expected on time around October.