Date: 17.10.

08
TATA Motors

OPEN LETTER TO THE CITIZENS OF THE WEST BENGAL

Over the past three weeks there have been statements by vested interests criticizing the decision
taken by Tata motors to move the Nano car project out of Singur claiming that the decision was
hasty and politically motivated. I therefore feel compelled to address this letter to the people of
West Bengal, to explain how our dreams of contributing to the industrial revival of west Bengal has
been shattered by an environment of politically motivated agitation and the hostility that finally left
us with no option but to withdraw the Nano project from West Bengal. Two years ago, when Tata
Motors decided to locate the Nano car project in West Bengal, it reflected the tremendous faith and
confidence we had, and still have, in the investor-friendly policies of Mr. Buddhadeb Bhattacharjee’s
government. All through the two years that we have been constructing the plant at Singur, this
feeling of faith and confidence in the vision of objective of the state government has been
reinforced. All our interaction with the Chief Minister and the industry minister in particular, as
also with several other officers, have been exemplary. We had therefore hoped that this project
would reinstate confidence for further investments in West Bengal and would create a large
number of jobs for the younger citizens, directly in the company and its suppliers, as also foster a
large number of small enterprises in the Singur area which would provide livelihood to the citizens
of that area. We had also taken medical and other community services in the Singur region. Our
fervent desire has always been to be a good, contributing corporate citizen enhancing the quality of
life of the people around the plant. Unfortunately, the confrontative actions by the Trinmool
Congress led by Ms. Mamta Banerjee and supported by vested interests and certain political parties,
opposing the acquisition of land by the State Government, have caused serious disruption to the
progress of the Nano plant. The land acquired by the State Government at Singur and leased to Tata
Motors has been, we believe, through a transparent process and fair compensation. The Trinmool
Congress’s position has been that this land acquisition by the state government is illegal. In
response to Public interest litigation, the Hon’ble Calcutta High Court has ruled that the land
acquisition is totally legal but the same plaintiffs have ¿led against this judgment in the Supreme
Court, which is pending a hearing. Throughout the construction of the plant, the Company has had
to endure constant acts of open aggression on the site, occasional acts of violence, breakage of the
compound perimeter walls, theft of construction material from within the project area, as well as
intimidation and even physical assault of employees, contract labor and residents of the area to be
absorbed in the project. Country bombs have been lobbed into the premise, obstructing the
movement of material and personnel into and out of the plant.

Various attempts at finding solutions were thwarted by the Trinamool Congress’s consistent
demand that land acquired for the Nano plant and/ or its integrated vendor park be returned to the
segment of the land owners which the Trinamool Congress party claims to represent. Tata Motors
has always maintained that this project has been conceived of as an integrated campus of
manufacturing facilities and suppliers, so as to maximise integration and minimise logistics and
material flow costs. Disruption of this integrated campus would make it extremely difficult for the
Company to meet its product price and productivity goals. On August 22nd, I addressed a Press
Conference in Kolkata, generally referring to the hostility and difficult environment we were facing
and appealing for a more congenial environment, failing which we would have no option but to
consider taking the project out of West Bengal. Unfortunately, the response to this appeal was an
escalation of the hostilities through a dharna on the highway in front of the plant, some more
incidents of physical assault and considerable amount of intimidation of personnel working at the
site, which finally resulted in the suspension of the completion work on the plant for almost a
month. All of you will therefore appreciate that the final and painful decision to move the project
out of West Bengal has not been a decision taken in haste, but a decision taken with great regret
after a great deal of deliberation and a final assessment that it was unlikely that a sustainable,
peaceful environment would develop in which our project could operate. We are conscious of the
disappointment and despondency that may be felt by some of the residents of Singur who may have
hoped for an improvement in their quality of life after the plant was operational. We believe the
responsibility for this would lie with the Trinamool Congress, which has created the hostile
environment that has obliged the Company to move the project from Singur. In the future, in the
state of West Bengal many Tata Motors-type projects may come and go, many political ideologies
may come and go, but the future of the state of West Bengal will depend on the path its leaders and
citizens take in developing and retaining an environment which will result in the prosperity of the
state in the years to come. Many may have forgotten that West Bengal was the major centre for
heavy industry and steel fabrication, Agitation and violence drove away many industries around 30
years ago, and it has only been in recent times that the present government has been able to rebuild
the confidence of investors to invest in the state. It is therefore ironic that, at this crucial time and
moment of hope for the state, history appears to be repeating itself. Agitation, violence and terror
are overtaking the state in the name of the agricultural community, to serve political goals – stalling
progress and destroying the newfound confidence in the state, while doing nothing for the rural
poor, other than making promises. West Bengal’s agriculture was a success story in the 1970s and
1980s but the farm sector’s growth has slowed in the recent past. It is self-evident that industrial
growth and agricultural growth must happen together in peace and harmony, and not through
agitation and activism.

The people of West Bengal – particularly the younger citizens – will need to express their views and
aspirations as to what they would like to see West Bengal become in the years ahead. Would they
like to support the present Government of Mr. Buddhadeb Bhattacharjee to build a prosperous state
with the rule of law, modern infrastructure and industrial growth, supporting a harmonious
investment in the agricultural sector to give the people in the state a better life" Or would they like
to see the state consumed by a destructive political environment of confrontation, agitation,
violence and lawlessness" Do they want education and jobs in the industrial and high-tech sectors
or does the future generation see their future prosperity achieved on “stay as we are” basis" The
future destiny of West Bengal lies with its citizens. They will need to decide whether they wish to
stand still and let growth take place elsewhere, or move forward with the present Government’s
progressive policy, so that West Bengal can take its rightful place with other states – sharing in the
future prosperity of India.

Ratan Tata