Nano car plant protest suspended

By Subir Bhaumik BBC News, Calcutta

Opposition groups described the agreement as big victory

Opposition groups in the Indian state of West Bengal who have been blocking construction work at a Tata Motors plant have suspended their protests.

The move came after the state government promised to return some seized land at the plant site.

Tata Motors stopped work last week on the plant where it plans to build the Nano, the world's cheapest car.

However the firm said that it was still reviewing the deal and work at the site was still suspended.

A Tata spokesperson said the company is "distressed at the limited clarity on the outcome of the discussions between the State Government of West Bengal and the representatives of the agitators in Singur".

But reacting to Tata Motor's statement, West Bengal industry minister, Nirupam Sen, said the Tata motors plant and the vendors park for the ancilliary industries would remain intact.

"This is an integrated project and we have done nothing to change that," said Mr Sen.

"We have only agreed to give some land in the project area to the land-losers, the land that the government has, but the rest of the land for the land-losers will come from outside the project area," he added.

The company said it was obliged to continue the suspension of construction and commissioning work at the Nano Plant.

"The government has taken the decision to respond to the demand of those farmers who have not received compensation," said Gopalkrishna Gandhi, the governor of West Bengal.

'Big victory'

Mamata Banerjee, the leader of the main opposition Trinamul Congress party leading the protests, described the agreement as a big victory.

"We have withdrawn our agitation because the government accepted our demand on principle," she said.

A committee is to decide the details of the land return next week.

Tata did not take part in the talks between the West Bengal government and the protesters.

The government agreed to return the maximum possible land within the plant site outside Calcutta to "unwilling farmers" who were against acquisition of their farms.

The opposition groups, led by the Trinamul Congress party, agreed to the government's proposal to provide the rest from around the plant site.

Exclusive look at the Tata Nano

Tata Motors, India's biggest vehicle makers, will retain 650 acres of land for the plant. The ancillary factories for the plant will get the 290 acres allotted to them.

West Bengal chief minister Buddhadev Bhattacharya said that the government had some land inside the plant site where it had planned some commercial parks and a green patch.

"That land may be given to the farmers," he said.

The West Bengal governor Gopal Krishna Gandhi said the agreement was a "victory for all, for industry and agriculture, for the government and the opposition".

Tata had faced violent protests and political opposition over the acquisition of farmland for the factory in Singur in the state of West Bengal.

Tata's owner, Ratan Tata, has said he will consider moving production of the Nano out of West Bengal if unrest around the plant continues.

Tata plans to launch the Nano later this year, priced at about $2,500 (£1,370) from the plant in West Bengal.

India's rapid industrialization in recent years has been the backbone of the country's strong economic growth.

But this process has provoked a backlash since the majority of Indians still earn their living off the land.

The policy of creating special economic zones to attract new investment has provided a focal point for the anger of poorer, rural families who rely on their land for food and income.