The Hindu Business Line : A solution for Singur

It would require political sagacity of the highest order to unravel the mess that the allotment of land by the West Bengal Government to the Tatas for the small car project, has become. In the event, the Chief Minister, Mr Buddhadeb Bhattacharjee's recent statement offers some hope for an early resolution. On the face of it, his statement that there is no going back on the allotment of land would appear to shut the door on talks with the Trinamool Congress leader, Ms Mamata Banerjee, on a fast over the issue. Yet, in a nuanced way, the Chief Minister is also conceding that there may have been some lapses in the decision-making process leading up to the allotment of land at Singur, but that Ms Mamata Banerjee should, in the larger interest of protecting the image of the State, let the matter rest.

If he were merely interested in scoring political brownie points with her, Mr Bhattacharjee would not have chosen the occasion of the anniversary of a local chamber of commerce to make the point. Also, the language he used is no less significant. He has spoken of a word given to the Tatas from which he cannot resile; in the context of Indian cultural ethos this is tantamount to saying that at stake is not some piece of farmland but Bengali honour. His speech has clearly set the tone for some intense back-channel diplomacy that could lead to the two parties issuing a joint statement agreeing to put the whole issue of acquisition of agricultural land for industrial purposes, compensation for the acquisition, and so on, for a detailed discussion. A resolution on these lines, Ms Banerjee must realise, would serve her political purpose quite well. She must know that the Singur land agitation, while useful in its own way to putting her back into political contention, is susceptible to diminishing marginal political returns. It would be naïve to expect the State to back down. So, her exit strategy must be on securing some larger political goal rather than wresting the land back for the farmers of Singur.

For the corporate sector, there is a lesson in all this. Such high-profile projects are bound to suffer from many vicissitudes. It should be prepared for delays in obtaining administrative clearances as rivals, of the government and the promoter, would be looking to exploit whatever opportunities present themselves. A related issue is whether going through the government for land acquisition is worth the trouble. While this route may free the buyer of worries about clear title, the flip side is that it is bound to be subject to delays through litigation. The corporate sector could seek the services of real-estate companies, which have now acquired a measure of sophistication, for acquiring large parcels of land for major projects.

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