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1.

Why did Tata's prefer to locate their 'dream car' plant at


Singur, West Bengal despite other equally good options such
as Dharwad and Uttaranchal?
Answer:

Tata Group had to produce Nano in larger volumes with all the
higher- volume parts manufactured in one plant.

The West Bengal government was ready to provide required


area (around 1000 acres) to Tata by doing land acquisition.

Singur is about 50kms northwest of Kolkata to be the most


suitable place.

Singur is very close to National Highway No. 2 connecting


Kolkata with Delhi.

Fulfilled the different aspects such as logistic, easily available


of resources, skilled labor, and social infrastructure such as
educational institute for the children of its employees.

2. Tata's should have considered Pune and Jamshedpur,


where they had multiple facilities and several ancillary units,
for locating this new plant, Do you agree with this
statement?
Answer:

Operating cost should be low.

Cost of setting up of new plant.

West Bengal government was interested to bring Tata to their


state.

3. Tata's have often chosen wrong locations for their plants,


such as the one at Lucknow, which is also marred with
controversies. Discuss.
Answer:

Lucknow as location for Tata Motors was not appropriate.


Did not get incentives as stated in the Industrial Investment
Promotion Policy by UP government.

Uttarakhand government providing excise duty exemption.

Shifted production to Pantnagar.

(Senior vice chairman of the Indian Industries Association in


Lucknow, Punit Arora, said, "The Industry body has been informed by
the vendors that the auto major plans to shift production to Udham
Singh Nagar in Uttarakhand to avail excise duty exemptions till
2017. Apart from this, the company is also planning this move as a
result of the Samajwadi Party government's failure to honour
promises that were made to large investors during Mulayam Singh
Yadav's tenure as chief minister. Tata Motors was promised
incentives that have still not been delivered after the government
changed.")
4. How do you think the problems at Singur can be amicably
resolved by Tata's for earliest construction of their plant?
Answer:

Creating awareness of employment.

Provide training to locals.

Conducting weekly meetings.

Training programs for women.

Introducing technical subjects in secondary schools.

Learnings

Understanding the legalities involved behind car production


plant set up.

Significance of choosing the best locality for plant set up on


basis of proximity and availability of raw materials.

Different initiatives been taken to resolve issues and finalize


the locality.

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