The government in India's eastern West Bengal state yesterday rejected a demand by farmers to return them disputed land acquired for making what is billed as the world's cheapest car.
Tata Motors, which is setting up the plant to roll out the US$2,380 Nano, has faced violent protests and political opposition over the acquisition of farmland in Singur, an hour's drive from Kolkata.
"I just cannot give back the land," West Bengal Chief Minister Buddhadeb Bhattacharjee said.
"Giving back 400 acres is dropping the project, I cannot afford to do that," Bhattacharjee said, referring to demands made by farmers and opposition parties to return land.
The trouble began after the government took over 1,000 acres of farmland for the factory. The government offered compensation, but some farmers with smaller land holdings have refused compensation, demanding that land be given back to them.
The protests reflect a larger stand-off between industry in India and farmers unwilling to part with land in a country where two thirds of the billion-plus population depend on agriculture. Mamata Banerjee, leader of the opposition Trinamool Congress which is spearheading the protests, threatened to stage a statewide campaign.
