India

Tata protests called off after deal struck

Article published on the 2008-09-08 Latest update 2008-09-08 12:18 TU

Trinamool Congress chief Mamata Banerjee speaks to the media.
(Credit: Reuters)

Activists opposing the land grab by India's Tata Motors company for new factories for the world's cheapest car struck a deal with West Bengal state government to end protests against the plant. The Trinamool Congress party, who had organised the protests, called the move a "big victory" for the farmers who had been evicted.

Tata Motors, however, indicated that it was not satisfied by the deal, citing "limited clarity on the outcome of the discussions". It has not decided whether to accept the state-government-brokered deal yet.

Tata Group said it would suspend the construction of the new plant.

The factory in Singur is 90 per cent completed, and was slated to manufacture the Nano car, which is billed to be the "world's cheapest car" and supposed to be launched in October in time for the Hindu festival season.

Protests have been going on for two years, but escalated during the past few weeks with demonstrators besieging the factory and threatening plant workers.

All work stopped over one week ago when workers were barred from entering the plant. Nearly 200 workers live in the village, where agriculture is still the main livelihood.

This issue shows the growing friction between the farming communities and big business over land rights.