Tata Signs Singur Land Lease Deal With Bengal GovernmentPublished by MAC on 2007-03-09
Source: http://www.indiaprwire.com/businessnews/ ()
Tata signs Singur land lease deal with Bengal government
9th March 2007
Setting in motion the process of setting up its much-touted small car factory at Singur, Tata Motors Friday signed a 90 years' land lease agreement with the West Bengal government.
Tata Motors Vice-President (Finance) R.S. Thakur signed the agreement with West Bengal Industrial Development Corporation (WBIDC) Managing Director Debasish Som and West Bengal Commerce and Industry Secretary Sabyasachi Sen. WBIDC had acquired the agricultural land at Singur, in Hooghly district, for Tata Motors triggering a violent protest movement by opposition parties.
'The agreement between Tata Motors, West Bengal Government and West Bengal Industrial Development Corporation (WBIDC) for the small car project in Singur has been signed today,' a statement issued by Tata Motors corporate communications head Debasis Ray said here.
'This agreement was signed to lease out about 650 acres (of the total 997 acres of land) for 90 years to Tata Motors for their mother plant. Of this area 14.5 acres would be for a power station and 47 acres for required infrastructure by the WBIDC,' Sabyasachi Sen told reporters after signing the agreement Friday evening.
According to Sen, Rs.5 billion would be spent by the vendors for the project and the land would be divided into two parts - one for the mother plant (about 650 acres) and the other for the ancillary units.
'The total project cost is Rs.15 billion and the cars are likely to be rolled out by March 2008,' said Sen. The small cars aimed at the middle class is to cost Rs.100,000.
The deal with Tata Motors triggered a violent face-off between the government and farmers over land acquisition led by civil society groups and parties like Trinamool Congress.