Sanand Plant (Tata Motors)

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Sanand Plant
Built January 2010
Location Sanand, Gujarat, India
Industry Passenger vehicle manufacture
Products Tata Nano (2008– present)

Sanand Plant is a passenger vehicles manufacturing facility located in Sanand, Gujarat, India, and manufactures the world's cheapest automobile, the Tata Nano; and is owned and operated by Tata Motors, it is also their newest automotive manufacturing facility.

About[edit]

Tata Motors’ plant for the Tata Nano at Sanand, located in the Ahmedabad district of Gujarat. The capacity of the plant, to begin with, will be 250,000 cars per year to be achieved in phases, and with some balancing is expandable up to 350,000 cars per year. Provision for further capacity expansion has also been incorporated in this location.

Built in a record time of 14 months starting November 2008, the integrated facility comprises Tata Motors’ own plant, spread over 725 acres, and an adjacent vendor park, spread over 375 acres, to house key component manufacturers for the Tata Nano.

In line with latest world-class manufacturing practices, the Sanand plant has been equipped with state-of-the-art equipment. They include sophisticated robotics and high speed production lines. The plant has energy-efficient motors, variable frequency drives, and systems to measure and monitor carbon levels. These are supplemented with extensive tree plantation, sustainable water sourcing through water harvesting and ground water recharging and using solar energy for illumination; all of this helps the plant to be more sustainable.

In June 2010, the first Nanos made at the plant rolled out from its main manufacturing plant at Northcote Cattle Farm. The construction time was a record breaking 14 months. The cost amounted to 20 Billion Indian Rupees (Ca. 200 Million Euro). During the starting period the production plant employed 2.400 staff. Including the indirect jobs around the plant there were about 10.000 people depending on the initial production. The plant has a capacity to manufacture 250,000 cars a year in the first phase, which will be scaled up to 500,000 cars a year. The project, including the main plant, vendor facilities and a railway transportation hub near Nidhrad Village, will together generate over 20,000 direct and indirect jobs. This plant uses land from Gujarat Agricultural University which was in the name of the Government of Gujarat.

Sanand Land Controversy[edit]

The 1100 acres of land[1] which was allotted to Tata Motors falls in the villages of Khoda and Bol in Sanand Taluka.

The government's move to acquire fertile agriculture lands for industry has agitated the farmers who are dependent on the lands for livelihood . Ever since the notification regarding the acquisition was published by the state revenue department on December 4, farmers to be affected have been holding meetings in Haripura, Charal, Bol and Siyawada villages and have decided to launch an agitation against the acquisition of their lands.They don't want with their land which is fertile and give three crops a year because of irrigation from Narmada canal One farmer Patel said."My extended family of more than 200 people will be workless if the source of our earning is taken away from us," he said ruefully, complaining about the government's move.According to him, the land is fertile and farmers grow paddy, wheat, pulses and vegetables. Farmers don't understand "why the government wants such fertile lands for industry," they asked.Even other farmers to be affected from the move echo similar feelings saying they will be rendered workless if their lands are taken away from them. "We don't want compensation or any relief package in exchange of the land we are depended upon," Ramanbhai Patel, a farmer from Hirapur said, adding that the government should use waste land for industry. The farmers have suggested alternative sites where lands are barren and could be used for industry, he said. [2]

According to one report:[1]

  • Immediately after the Sanand Plant deal was sealed, Gujarat Industrial Development Corporation had notified six villages for acquisition in Sanand. Farmers initially were under the impression that the authorities would take away their land for free. In distress, about 3,000 of them protested. The government explained that it was not trying to get their land for free, declared the price of the land at Rs 1,200 per square meter (US$ 108,000 per acre), four-times better than the market price. The opposition crumbled, farmers enthusiastically cooperated with the government, and agreed to the acquisition. However other reports say that farmers were aware about the compensation, but protested the acquisition of fertile land.[2]
  • Post-acquisition, the locals claim one of the biggest gains to come out of the Nano project is that the environment in our village has improved drastically. The Gujarat government has placed significant efforts into preventing pollution and improving environmental quality in Sanand. It has given notice to factories, small as well as large, that emit high levels of pollution in the area to either leave or treat the pollutants. This has been well received by rural communities around Sanand.

Tata Motors paid Rs 900/sqm (US$ 81,000 per acre) to the Gujarat Government for the land in Sanand.[3]

Automotive manufacturing is a globally competitive industry. For context purposes, the price paid by Tata may be compared with land prices elsewhere in the world:

  • According to The Financial Times, in 2008, the farmland prices in France were Euro 6,000 per hectare ($2,430 per acre; IN Rs. 1,09,350 per acre).[4]
  • According to the United States Department of Agriculture, as of January 2010, the average farmland value in the United States was $2,140 per acre (IN Rs. 96,300 per acre). The farmland prices in the United States varied between different parts of the country, ranging between $480 per acre to $4,690 per acre.[5]
  • According to a July 2011 report from the Government of India, the average land productivity from farming in India is less than Rs 22,500 per year per acre (USD 500 per acre per year). The average rural household per capita expenditure/income in 2010, was IN Rs. 11,136 per year (US$ 252 per year).[6]

Nano story of Sanand farmers[edit]

Ahead of the assembly polls, in Sanand, the BJP stronghold, a section of farmers are feeling let down by the acquisition of land and many others are now struggling to find their feet in the new economy.

“I didn’t want to sell my land but the government left us with no alternative. I am a crorepati today but I have lost ancestral land where we grew multiple crops — rice, jowar, wheat. It was hard work but the only work we know,” said Rathod a farmer from Sanad

He is now wondering where to invest money, once his compensation which is in crores comes in and how to make sure that his 15-year-old son Kisan doesn’t get wasted.

Many of the farmers, who sold their land from seven other villages — Hirapur, Gokalpur, Charal, Siyawada, Bol — to GIDC much earlier and raked in lakhs have frittered away their compensation. “Not one person in my village has been hired by the plant, they mostly use labourers from UP and Bihar,” added Rathod, sitting outside his new house. Lalji bhai Shankarji, another farmer who sold his land to GIDC, told HT, “There is development but more for industry and not for us farmers.Although we got good money for our land but lost our livelihood.”

See also[edit]

References[edit]

  1. ^ a b From Nano to magna. Business-standard.com. Retrieved on 2012-07-11.
  2. ^ a b "Farmers to launch protest against land acquisition in Gujarat". Ahmedabad: DNA India. 9 December 2009. Retrieved 18 July 2014. 
  3. ^ Ford takes Tata route, to invest Rs 4K cr in Sanand. Indian Express (2011-07-29). Retrieved on 2012-07-11.
  4. ^ "European farmland hits record prices". The Financial Times. 
  5. ^ "Land use, value and management: Agricultural Land Values". USDA Economic Research Service. 
  6. ^ "KEY INDICATORS OF HOUSEHOLD CONSUMER EXPENDITURE IN INDIA, 2009–10". GOVERNMENT OF INDIA, MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION, NATIONAL SAMPLE SURVEY OFFICE. July 8, 2011.