October 12, 2008

TATA Motor unhappy with business climate in Jharkhand

Ranchi Express reported that the law and order problem coupled with Jharkhand government's lackadaisical approach towards infrastructure development and industrial growth is taking a heavy toll on TATA Motors' Jamshedpur plant.

Mr SB Borwankar head of TATA Motor Jamshedpur plant said that several negative factors combined has led to transfer of several core businesses of the company from here to Lucknow and Uttaranchal plants. He added that "The present condition in state does not augur well for the industry as whole, and if it continues to persist, businesses would keep on migrating to other states."

Mr Borwankar said that "The state needs an industrial climate. We are in the process of making world class trucks. But for that we need clusters of small and medium enterprises based on auto components to come up near our plant. Acquisition of land remains a major hurdle here. There is no aggressive investment policy. Half of our business has already gone to Lucknow for these reasons."