Tata Motors in Singur: Public Purpose and Private Property (B)

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Compact case

Supplement

Reference no. 9-709-029

Subject category: Economics, Politics and Business Environment

Authors: Laura Alfaro (Harvard Business School); Lakshmi Iyer (Harvard Business School); Namrata Arora (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 2009

Version: 17 October 2012

Revision date: 20-Nov-2012

Length: 4 pages

Data source: Published sources

Topics: Business & government relations; Conflict; Conflict resolution; Emerging markets; Manufacturing

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Abstract

In October 2008, Tata Motors canceled their car manufacturing plant in West Bengal state, in the face of widespread farmer protests over land acquisition issues. This meant abandoning a project in which the company had invested USD300 million and delaying the launch of the Nano, the world's cheapest car. What strategy could Tata have pursued to avoid this outcome? Would similar problems arise in Gujarat state, where the project had been relocated?

Location:

India

Industries:

Automobiles; Property management