What have the communists done for West Bengal during their 34 years rule?

On 25th May, 2014, Hindustan Motors announced that they will be suspending the production of Ambassador cars in India from its Bengal based factory. Based on Britain’s Morris Oxford series of cars by the Morris Motors, Ambassador was the first car to be produced in India. It started production in 1958, and for a long time was the only car to be sold in India.

Since 1958 Ambassador car was a status symbol and enjoyed a near monopoly till 1980s. By 1980s, Maruti 800 started taking market share for passenger car and taxi. So, what went wrong for Hindustan Motors (HM). There was multiple issue for the decline. Despite having great market share and profits, HM failed to invest in new technology like engine and other parts. If we compare with another western iconic bike maker Royal Enfield (RE), who started early in India and also enjoyed market monopoly but constantly innovated the products, improved various technology, the problems of HM will become clear. A major difference between HM and RE is that HM factory was at Hind Motor near Calcutta/Kolkata which was ruled by communist CPM party for 34 years. RE was lucky that they never had production operation in communist Bengal. HM faced the same problem which was faced by all 6000 industries ie. industrial strikes, gherao and tool down strikes frequently inside factory, frequent fight with management by union leaders, extortion of money by political party goons, forceful deployment of excess labour force by militant trade union leaders etc.

After a decade of communist mis-rule by CPM, HM lost motivation to upgrade the factory and technology. The factory was so huge that it was not possible to move out the factory out of communist Bengal. So, the steady decline continued and HM never planned for any capacity expansion or technology improvement. Most of the MBA schools including IIMs have analysed the case study of Hindustan Motors and its decline.

Status symbol in Bengal during 1970s: smoking cigarette with white dhoti-kurta, nagra shoes and ambassador car was considered as ultimate status symbol

Price of Ambassador car in mid 1960s was Rs 9000 and in early 1970s was Rs 17000 approximately

Good old days of Ambassador cars

Bengal got a second chance to make small cars in 2005 when Tata selected Singur for Tata Nano small car factory. That project was scuttled by opposition leader Mamata Banerjee who wanted to become CM using Singur farmers unrest whose land to be acquired for Tata Nano plant. After a prolong stalemate lasting around 5 years, Tata withdraw from Singur and shifted the plant to Gujarat’s Sanand by invitation of Gujarat’s CM Narendra Modi. Naturally, she failed to get significant FDI investment in the state.

Mamata Banerjee says ‘tata’ to Ratan Tata

CM Modi welcomes Ratan Tata to Sanand, Gujarat

Another initiative to build a chemical complex at Nandigram by then CM Buddhadev Bhattacharya was also scuttled by current CM Mamata Banerjee. A Rs 40000 crore investment from Salim group of Indonesia for a chemical SEZ (special economic zone) at Nandigram which was negotiated by Bhattacharya left after few years of violence against it by Mamata Banerjee’s TMC goons and never materialized with Mamata Banerjee becoming CM.

Communists just ruined Bengal’s industrial, economic, academic institutions and gave poverty, unemployment, political violence. The most surprising part of Bengal politics is that CPM got re-elected seven times during their 34 years rule and Mamata Banerjee’s TMC won three times without doing anything positive for the state.

Does transport minister and industrialist’s agree?

CM Mamata Banerjee after winning third term in 2021, met central road transport minister Nitin Gadkari on 29 July 2021 and discussed issues related to road and infrastructure projects in her state. "We discussed issues related to road and infrastructure projects, including transport, road connectivity and manufacturing units with electric buses. We have also asked to build some flyovers in Kolkata," Mamata Banerjee said.

Modi government initiated Rs 26000 crore PLI scheme for automobile manufacturing in September 2021. Any takers for Bengal?

Picture source: Google Archive

Nandigram project may be shifted: CM
Stating that there would no going back on the Tata Motors Singur project, West Bengal Chief Minister Buddhadeb Bhattacharjee today said the planned chemical hub in Nandigram could be relocated if
https://www.business-standard.com/article/economy-policy/nandigram-project-may-be-shifted-cm-107022601087_1.html
India clears $500-mn Salim Group investment
India clears $500-mn Salim Group investment
https://www.livemint.com/Companies/TQQSJ3NXP8StgqRelqSTUL/India-clears-500mn-Salim-Group-investment.html
Salims pull out of big Bengal projects
Salims pull out of big Bengal projects
https://www.indiatoday.in/business/india/story/salims-pull-out-of-big-bengal-projects-58729-2009-10-17
It would be great if West Bengal gets electric vehicle manufacturing industry: Mamata at meeting with Gadkari
Sources said CM Mamata Banerjee will also meet Ministers of key departments such as petroleum, aviation, railways and commerce soon to discuss various development projects in the State
https://www.thehindu.com/news/national/it-would-be-great-if-west-bengal-gets-electric-vehicle-manufacturing-industry-mamata-at-meeting-with-gadkari/article35605232.ece

 

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