Tata Releases the Nano, No Thanks to Mamata Banerjee

Hooray for Tata Motors! The BBC reports that the Nano, known as the world's least expensive car, will go on sale in India within the next 10 days (As of 23 March 2009).

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Additionally, "A slightly bigger European version, the Nano Europa is due to follow in 2011, and is expected to cost nearer to £4,000. " All of this, no thanks to petty politician and poverty pimp Mamata Banerjee.

In my previous writings about the Nano saga, (here, here, and here) Banerjee and her ilk agitated destitute dirt farmers to protest against Tata to keep them from building the Nano plant in Singur. In addition to killing a supplier factory head, the goons also ran off what could have been over 4000 new factory jobs. Banerjee and her Trinamool Congress Party have forced the road to prosperity to detour to Gujarat. Compare Auto Insurance Quotes and Save!

In the end, the market prevailed. Tata built its car in Gujarat and now a whole generation of people will be able to own their own cars and the freedom of movement that entails. Additionally, people with the Nano will be able to increase their businesses that were previously relegated to scooters or animal-drawn carts. People's lives have been improved not by poverty pimps like Mamata Banerjee, but by a big corporation, Tata Motors.

Tata Motors Says "Tata" to Singur

Tata Motors, who is building the world's least expensive car, the Nano, has finally fled business unfriendly Singur, in West Bengal, for Sandand in Gujarat. I have written two other articles about this topic, "Indians are Bad for Indian Business" and "India, When it Can't Get Any Worse."

In a press release dated October 7, 2008, Tata states:

"The integrated project, ... will come up on an area of about 1100 acres. The plant, ... will produce 250,000 cars per annum. The capacity is expandable up to 500,000 cars per annum. The project, including Tata Motors’ plant, vendor facilities and service providers, will together generate over 10,000 direct and indirect jobs."

I guess poverty is what local politicians had in mind for the populace, and poverty they will continue to enjoy. When will Indians learn that the way to move a country forward is through a positive business climate, and not one ruled by tin-pot, local politicians?? Gujarat seems to have learned that simple lesson, while West Bengal hasn't. It is a shame for the poor who are left to suffer.

Indians Are Bad for Indian Business

*Make sure to read the update, "India, When it Can't Get any Worse" found here.*

Huh? In today's The Wall Street Journal print edition, there is an article titled, "Protests in India Push Tata to Stop Building Car Plant." (03 Sept. 2008, A8).

Tata Motors has a design and wants to build the world's cheapest car, the Nano. Priced around $2500, "...the minicar has been touted around the world as revolutionary." It is revolutionary mainly because of its price point, but also because of its Indian construction for global consumption.

However, some farmers near the proposed "...plant in Singur, in the eastern state of West Bengal, about 25 miles from Kolkata..." are upset that they have "lost" their land. Lost is a relative term. Tata purchased 1000 acres from farmers, though some decided not to accept the money. Instead, they are organizing with other farmers and politicians to demonstrate against the plant.

This is only the beginning of the incongruity. From the article, "...Tata is known as one of India's most powerful, yet socially responsible employers." Additionally, the building of the plant brought over 4,000 jobs to the depressed area. The total investment was about $345 million, and 60 suppliers were setting up to support the plant and production. All of this was promoted by the local ruling party, the Communist Party of India (Marxist).

Confused yet? A benevolent corporation, setting up shop in a poor area, with good jobs (close to 20,000 new jobs), supported by the Communists (of all people), is seriously considering closing their plant because very poor people (subsistence farmers) want to stay poor. Of course, local politicians are in on the action, "... to portray the Communists as insensitive to the interests of small farmers and local constituents."

It gets better. If Tata pulls out, it is almost guaranteed that no new investment will come into the state, leaving Mitsubishi Chemical Corp the loan survivor. Breathtaking, isn't it? By far, this has got to be one of strangest stories I have read in a long time. Communists are trying to improve the economy with private investment. The poor want to stay poor. A car made for poor people won't be made because the poor are protesting a factory and 20,000 new jobs.

Good job, protesters in Singur! Enjoy poverty!

Two things are infinite: the universe and human stupidity; and I’m not sure about the universe.- Albert Einstein (Hat tip to stuckon-stupid.com)