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Problems Tata’s dream of making cheapest car of the world has always remained in controversies ever since its conversion into reality. First it took more than expected time to design and make the model of the car. Second it costs more than the promised rate. But real problems started for the manufacturer when it took land on lease from the West Bengal government to establish the manufacturing unit for the production of the cheapest car(Nano) of the world.

Agitations State government had acquired almost 1000 acres of the land from the farmers of Singur. But since then farmers were agitating against the state government. They were demanding their land to be given back to them. State saw a lot of violence because of this issue. But situation deteriorated when some leaders politicized the issue to gain popularity in the Left ruled state. They exploited the public sentiments. All it resulted in delay of the production of Nano.

Politics Situation deteriorated more when Trinamool Congress leader Mamta Benerjee stepped into the crisis. She has been spearheading the farmers’ agitations against the state government for months. It has aggravated the law and order situation in the state and delay in the project. State government’s all efforts to defuse the tension have failed. Mamta is demanding that 400 acres of land should be given back to the farmers. She has planned to lay siege of the car plant in Singur on 24 August. Tata requires the land to establish ancillary units at the same place to keep the manufacturing costs low.

Ratan Tata But on the other hand Ratan Tata, Chairman of Tata Motors has threatened to pull out the Nano project from Singur if violent protests continued. He said “We don’t want to come where we are unwanted.” Violent protests guided by political oppositions has resulted in cost overruns and delay in the production of the car. Tata Chairman had met state Industry Minister Nirupam Sen on Thursday in Kolkata and was worried about the protest.

Reasons There are various reasons that are the reason of crisis. WB is being ruled by Communist parties of Indian for more that 25 years. Opposition parties want to exploit the issue to break political monopoly of left in the state. Tata’s Nano project has worried the other car manufacturer companies in India.  So   involvement of the corporate world in the violence activities can not be denied.