After meeting Friday with local politicians, Tata group settled its dispute with local farmers. Construction of the Nano factory will resume in peace, helping the company avert losing hundreds of millions of dollars. Plus, the $2,500 car’s production won’t be delayed.
WSJ: The agreement, after two weeks of acrimony and daily protests, could allow construction to resume. It also reduces the likelihood that Tata, part of India’s flagship conglomerate, will make good on its threat to move production of its Nano model — expected to be the world’s cheapest car — elsewhere in India.
The Communist government of West Bengal, in eastern India, said Sunday the state will try to return some of the land that had been forcibly taken from some farmers to make way for the 1,000-acre facility for Tata Motors and dozens of its suppliers.
West Bengal Governor Gopalkrishna Gandhi and Mamata Banerjee, who led the protests, unveiled the compromise late Sunday after three days of negotiations. Ms. Banerjee is head of the Trinamool Congress, a local rival to the Communist government.
Business Insider Emails & Alerts
Site highlights each day to your inbox.