Singur land lease agreement

[The following report was published in Singur, our previous blog on 11 March 2007. We republish it again considering its importance right now.]

West Bengal government signed the land agreement with TATA for the proposed Singur plant. It’s a good deal for TATA, no doubt.

Government gives the land to TATA with a lease for 90 years.

The bonanza could be summarized as follows:

We must appreciate the potential of West Bengal government for discovering tricks to make us fool. Apparently, TATA will pay more than Rs 800 crore. But, look at the payments it needs to pay in the first 30 years. Only Rs 56.25 crore. In the next 30 years it will pay Rs ~200 crore. But, if we consider the rate of inflation (currently more than 6%) then this figure will not be that big. The same is true for its payment for last 30 years.

Essentially, TATA doesn’t need to pay anything right now for the land. Although West Bengal Industrial Development Corporation (WBIDC) has borrowed Rs 150 crore with 10% annual interest to acquire this land. WBIDC has to pay Rs 15 crore per year as interest; for 90 years it has to pay Rs 1350 crore for interest only, whereas for 90 years TATA will pay only Rs 800 core.

It means West Bengal government signed an agreement to subsidize TATA for Rs 700 crore over the period of 90 years. Again consider the figures. For the next 90 years, TATA will pay Rs 800 crores and enjoy Rs 700 crore as subsidy. In reality the actual subsidy is far bigger than what is being reflected in those figures. WBIDC has already borrowed Rs 150 crore. Considering the rate of inflation, after 90 years, this amount will be really huge. And it has to pay Rs 15 crore each year as interest. On the other hand right now TATA needs to pay only Rs 1 crore in a year. And it will pay its most of the payment at its last 30 year period of lease.

Who will actually pay the subsidy?

Buddha?

CPM?Or other running dogs of imperialism-comprador capitalism?

No. This subsidy will be paid from our hard earn money. With our hard earn money these running dogs of imperialism and comprador capitalists subsidize crores to Multinational and big companies while letting our people dieing of starvation.

This is what they call as DEVELOPMENT.

We call as LOOT.

Don’t you think it is our duty to make an end of it?

(The detail of the lease agreement is taken from the bartamanpatrika.com, March 11, 2007)

Update

Nirupam Sen, the commerce minister of West Bengal government confirmed the above mentioned lease agreement in assembly on March 15, 2007 (source: ganashakti, March 16,2007). He pointed out that TATA will enjoy other facilities like Tax holidays for Singur plant.