On a day when the CCEA (Cabinet Committee of Economic Affairs) of the central government green-signaled Salim Group’s investment of Rs.2250 crore for the 1st phase of infrastructure development in Bengal, a study by center’s heavy industries ministry has come out that says that 997 acres of land acquired by Tata Motors in Singur is less than optimum requirement (ref: ABP, Feb 23). Let’s see what is said in the study.
Gurgaon’s Maruti plant stands on 1250 acres, Mahindra’s Mumbai plant on 1060 acres, even Tata Motors’ Pune plant is built on 1110 acres of land. The study has found that a car plant’s productivity increases significantly over a long period by shaving off just a few seconds in every hour of work.
For example, in Maruti’s Gurgaon plant, in the final assembly line the nut-bolt tray is brought forward from behind, which has seen an incremental saving of only one and a half second per hour of work. This apparently insignificant time-saving has however translated into an increased manufacturing of 30,000 cars per year from the plant.
What this means is that in car plants there must be a ‘science of convenience’ between the main assembly plant on one hand and the various sub-plants on the other. It is for this reason that big car plants also have various car accessories plants (the second stage) as well as suppliers’ facilities that supply to accessories plants (the third stage). When all work in tandem, the combined effect is reflected in the main plant’s ability to improve productivity.
The heavy industries’ ministry’s report has estimated that at least 450 acres of land is necessary for the main assembly plant to churn out 1 lakh cars a year, after which for every one-lakh more production, the land requirement increases by 25%. This means for the Singur plant to make 3 lakh small cars every year, Tata Motors would need another 225 acres of land.
Since in addition the 2nd and 3rd stage facilities need land equivalent to at least 90% of the main plant, it is clear to see that the total land required for a 1-lakh+ car per annum plant ought to be minimum 1080 acres. Further, for future expansion, 20% more land has been prescribed.
Singur’s proposed plant falls short in terms of land required to build a world-class modern facility. In which case, Tata Motors may prefer having the 3rd stage facilities located not in the main compound but in a separate place nearby.
Will the above report sway the opposition mood in favor of the factory? No chance, for they’re too committed to protect poverty and mediocrity from the ‘onslaught’ of modernity and better living. But the report will go a long way to silence the ‘pundits’ among their ranks who doubted why so much land is required for Singur plant.
Technorati Tags: tata motors, maruti, tata, singur, kolkata, calcutta, west bengal, bengal
Leave a Reply