The October production of the Tata Nano, a $2,300 mini-car, may be slowed or halted due to violent protests at the new Singur, West Bengal plant. Eruption of protests began after Tata build a $350 million plant on the site of fertile farmland. The West Bengal state government provided Tata Motors with 1,000 acres for the factory, which they brought from local farmers. Some farmers refused to sell and are demanding the return of their land.
The increasing amount of violence is concerning Tata, so much so that the Indian automaker is considering completely abandoning the site. “What has concerned us is the violence, the disruptions, that has led us to be concerned about the safety of our employees, our equipment and investment, and of the viability of the process,” said Chairman Ratan Tata “If anybody is under the impression that because we have made this very large investment of 1,500 crore rupees ($350 million), that we would not move, then they are wrong, because we would move, whatever the cost, to protect our people. I can’t bring our managers and the families to West Bengal, if they’re going to be beaten, if there is going to be violence constantly, if their children are going to be afraid to go to school.”