In October 2008, Tata Motors abandoned its Nano project at Singur in West Bengal in the face of intense agitation led by Ms Mamata Banerjee. More than two years later, the newly elected Bengal Government, led by Ms Banerjee, today passed a Bill to “vest” the entire 997 acres — including the abandoned factory sheds and other structures of the auto major and its vendors — with the State Government.

The vesting will be done in view of “non-commissioning” of the project and “no employment generation and socio-economic development in and around the area”, as was originally projected by the Government to justify the land acquisition.

Tata Motors reacted to this, saying in a statement that the company had pulled out the project in the face of “violence, disruption of activities, damage to property, threats to personnel” and others.

Of the total land, 647 acres were under direct leasehold of Tata Motors and the rest was to be allocated to its ancillaries and other such peripheral facilities at the recommendation of the automaker.

The Singur Land Rehabilitation and Development Bill, 2011, which was cleared by the West Bengal Legislative Assembly today and sent for the assent of the Governor, aims to return a portion of the land to “unwilling farmers” (who have not accepted the compensation previously offered by the State Government) and utilise the balance portion in public interest.

According to the proposed Act, WBIDC — the nodal agency which acquired the land and leased it to Tata Motors — will transfer land ownership to the State due to “non-achievement of the project”. The State in return will pay Rs 137 crore to the WBIDC against compensation offered to land-losers. On being vested, the Government will return equivalent quantum of land (as was acquired) to the unwilling owners.

The Tata Motors statement said the company “will study the Bill and take appropriate steps.” The company also reiterated its initiatives in community development, support to local health and education systems, skill development and others. The project was slated to create 2,000 direct employment and 10,000 jobs through peripheral activities.

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