Thursday, October 28, 2010

Nano gone, but ancillaries in Rs 1000cr Singur biz plan

Singur's dreams need not die with Nano driving off to Sanand. 

Even as Tata Motors keeps the guessing game going over a possible comeback, as many as 10 ancillaries that made a beeline to the former Nano site along with the automaker have decided to stay put and set up alternative projects there. 

Two big ancillaries, of which one is the UK-based Caparo Group owned by Swraj Paul, have already submitted alternative project plans to the West Bengal Industrial Development Corporation (WBIDC). The two together have about 130 acres in their possession. "Some big vendors like Caparo Engineering, Supreme Treves, Lumax are interested in setting up projects in Singur because of the locational advantage of the land," sources close to the vendors said. It is learnt that the combined investment of these projects could be more than Rs 1,000 crore. 

Caparo Engineering, which has 21 acres, was supposed to set up a sheet metal unit for Nano. Lumax is a leader in head and tail lamps. Supreme Treves has expertise in plastic auto parts. A majority of the 54 ancillaries that accompanied Tata Motors are reportedly putting pressure on the automaker to come clean on Singur so that they can go ahead with individual projects. At least 10 have initiated talks with the WBIDC and only two have so far asked for refund against surrender of their land allotment.