Tatas may have failed to deliver the economic scenario they presented while seeking relocation package by way of fiscal incentive from Government of Gujarat. However, this is no judgement on Narendra Modis intent to use the NaNo project to add to the economy of Gujarat by developing an automotive manufacturing hub with NaNo as its core. If at all, it only reaffirms his leadership ability to take risks which are good for the state whose governance (and hence prosperity) he is responsible for. I think it will be worthwhile to do a simulation to ascertain the cascading effect of the NaNo project (as presented by the business case of Tatas) in the manufacturing sector particularly wrt the impetus it was presented to provide through its vendor base mostly consisting of the Small & Medium Enterprises. When I started my career, my first job was with a Tata company where the aura of JRD kept us inspired. However, there is little doubt in my mind that the Tata group with time has lost its patriotic flair and is more focussed on working the system to any how add to growth numbers. Numerous instances come to mind such as the Neera Radia case and also the recent experience that I have with the PPP model with Tata Consultancy as the private partner. The inbuilt overlook of the processes is a glaring example of either collusion or deficiency of service. No nation can become truly prosperous if entities, particularly the large ones anyhow work the system for their growth. End of the day & rightly so the NaNo has failed to deliver and the market has rejected the product as a bad product. I wonder if Tatas will be able to avail much of the fiscal incentive extended to them and which is closely linked to the sales they make of the vehicle. Unfortunately, a collateral damage will be the dreams that many vendors in the SME space would have woven around this story telling. for ref a note on NaNo petition judged today at Gujarat High Court firstbiz/economy/tata-nano-loan-hc-order-beats-hollow-rahul-gandhis-toffee-model-charge-modi-83285.html
Posted on: Sat, 26 Apr 2014 16:30:44 +0000
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