I am a little disappointed with the Tata Group of late.
During JRD Tata's period, the Group was so highly regarded that the common man never questioned the intentions or integrity of the Tata's. My father used to swear by Tata products, so much so that he was one of the first to by Tata Iodized salt in 1980's which was retailed at 10 times the prevaling price of common salt (Salt was being sold as commodity @ 25 paise per Kilogram when Tata came up with packaged iodized salt @ Rs 2.50 per Kg). I used to mock him being the skeptical fresh MBA that I was for being taken for a ride by a good marketing firm. His refrain was 'If Tata says it is good, then it must be good'.
Times have changed and the Group, under Ratan Tata has really consolidated to become a truly global player. Tata's was one of the Groups that adapted itself beautifully during and after the Economic Reforms in early 1990's and developed multiple layers of core competencies.
What is ironic is that Industrial giants like Tata, Bajaj, Reliance,Infosys, Wipro etc shout on top of their voice through all media (and there are many who are their mouthpieces and do not dare raise their voice against these Groups for fear of losing advertising revenue) on the need for less governmental intervention (in fact they ask for NO governmental intervention) and for the Government to adopt free market economic policies. I have heard all these industrial heads on TV and newspaper advocate this opinion in no uncertain terms.
But, what people do not understand is that these very Industrial Groups lobby for and get far too many concessions from the same government by way of cheap land, subsidised utilities, tax exemptions etc. The money lost to the excehquer by way of these exemptions runs into thousands of crores which could have otherwise utilized appropriately for a host of other development purposes.
Our Private Sector has steadfastly refused to accept the need for affirmative action to help the underprivileged in the society. They have lobbied hard. Admitted, I am not a great fan of Reservations as it has proved to be a disaster in modern India. But we need to have some kind of a structural support to help the really needy. The most ideal thing will be for these industrial groups to help bright students from needy family with their education and if found suitable, to offer them lucrative jobs.
Anyway, I am digressing from the main point. What made me write this post was the continuing agitation against the Tata Nano plant in Singur in W. Bengal. I cannot understand why those who propound the free market theory should hide behind the Government's saree to get a piece of land to set up a Car Factory. You can either have free market in totality or you should allow governmental intervention. What you cannot do is ask for Governmental intervention when it suits you and then fight against it when you are made accountable or when it doesnt suit your business needs.
The farmer and the poor have a peculiar relationship with his land which city bred people do not understand. The poor's whole life revolves around his land. If one were to take it away from him, it is as good as killing him as it has both social and psychological implications. Resettlement by providing him with a land may not suffice. One has to be view fair compensation from this viewpoint.
My take is that if Tata, or for that matter any private industrial group, wants land to set up a factory, they should buy land from the owners directly. Why should the government interfere in this? If an industrial group can raise capital, purchase machinery, recruit people and procure raw materials from the market, then they should also be quite capable of negotiating with the land owners for the land that they need. No government agencies gives you and me any sort of help when we buy land to build a house in India. Then why should the government help a profit making private industry by going out of the way. But then, why should an esteemed group like Tata's behave like a land grabber and deny the market price to the landowner, when they buy a company like corus at a premium? Is it because the landowners are poor and the corus shareholders are rich?
Shame on you Tata! Your group used to show the way to others on social responsibility. JRD even created a City around the Jamshedpur Steel Plant. It is sad to see Tatas fall from such a high pedestal
