The BSE Sensex recovered about 245 points in opening trade today, breaking its two-session losing streak on value-buying by investors and optimism ahead of GST Council meeting.

Buying by domestic institutional institutions (DIIs) and a firm trend on other Asian bourses, tracking overnight gains in the US markets, influenced trading sentiment.

Expectations that the GST (goods and services tax) Council might give some relief to some sectors by slashing the indirect tax rates at its meeting which begins today also supported the rebound, brokers said.

The 30-share barometer, which had lost 512.38 points in the previous two straight sessions, was trading higher by 244.99 points, or 0.73 per cent, to 33,463.80, with all the sectoral indices led by oil &amp; gas, realty, PSU and metal trading in green.

On similar lines, the NSE Nifty rose 65.30 points, or 0.63 per cent, to 10,368.45.

Major gainers were Hindustan Unilever, Tata Steel, SBI, Sun Pharma, Reliance Industries, ONGC, NTPC, Dr Reddy&#39;s, Asian Paint, Axis Bank, ICICI Bank, Wipro, Infosys and Bharti Airtel, posting gains of up to 2.14 per cent.

Tata Motors also rose 1.82 per cent ahead of its Q2 earnings to be announced later in the day.

Among other Asian markets, Hong Kong&#39;s Hang Seng was up 0.96 per cent, while Japan&#39;s Nikkei rose 1.98 per cent in early trade. China&#39;s Shanghai Composite Index was up 0.05 per cent.

The US Dow Jones Industrial Average ended 0.03 per cent higher in yesterday&#39;s trade.

Buying by domestic institutional institutions (DIIs) and a firm trend on other Asian bourses, tracking overnight gains in the US markets, influenced trading sentiment

The BSE Sensex recovered about 245 points in opening trade today, breaking its two-session losing streak on value-buying by investors and optimism ahead of GST Council meeting. Buying by domestic institutional institutions (DIIs) and a firm trend on other Asian bourses, tracking overnight gains in the US markets, influenced trading sentiment. Expectations that the GST (goods and services tax) Council might give some relief to some sectors by slashing the indirect tax rates at its meeting which begins today also supported the rebound, brokers said. The 30-share barometer, which had lost 512.38 points in the previous two straight sessions, was trading higher by 244.99 points, or 0.73 per cent, to 33,463.80, with all the sectoral indices led by oil & gas, realty, PSU and metal trading in green. On similar lines, the NSE Nifty rose 65.30 points, or 0.63 per cent, to 10,368.45. Major gainers were Hindustan Unilever, Tata Steel, SBI, Sun Pharma, Reliance Industries, ONGC, NTPC, Dr Reddy's, Asian Paint, Axis Bank, ICICI Bank, Wipro, Infosys and Bharti Airtel, posting gains of up to 2.14 per cent. Tata Motors also rose 1.82 per cent ahead of its Q2 earnings to be announced later in the day. Among other Asian markets, Hong Kong's Hang Seng was up 0.96 per cent, while Japan's Nikkei rose 1.98 per cent in early trade. China's Shanghai Composite Index was up 0.05 per cent. The US Dow Jones Industrial Average ended 0.03 per cent higher in yesterday's trade.

Sensex recovers 245 points on value-buying, global cues

India&#39;s Tata Motors reported a sharp rise in second-quarter profits on Thursday, helped by higher sales of its Jaguar and Land Rover cars, but warned of challenges ahead for its flagship British subsidiary.

Jaguar Land Rover (JLR), which has been driving Tata Motors&#39; profits for several years, expects sales in the UK and United States to soften because of competition but is confident of growth in China, JLR CEO Ralf Speth told reporters in Mumbai.

&quot;We know that overall the economies are stronger around the world but it&#39;s also clear that we see, one or the other, weakness from a political side, from an economy side. Think about Brexit, think about the U.S. at the current moment,&quot; Speth said.

JLR plans to launch several new products next year including the Jaguar XF Sportbrake sport-utility vehicle (SUV), the E-Pace, a compact SUV, and the I-Pace, its first electric sports car, Speth said after the company announced a three-fold rise in profit.

Tata Motors&#39; consolidated net profit for the quarter ended Sept. 30 rose to 24.83 billion rupees ($382 million) compared with 8.28 billion rupees a year ago, helped by strong demand for Range Rover Velar and other new models.&nbsp;

Analysts on average had expected a net profit of 14.99 billion rupees, according to Thomson Reuters data.

Pre-tax profit at JLR rose 38 percent to 385 million pounds ($505 million) and its margin on earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 11.8 percent from 10.9 percent a year ago.

Retail sales of its Jaguar saloons and Land Rover sport-utility vehicles were up 5 percent on the same quarter last year, as an increase in sales in China helped offset lower UK sales.

JLR, Britain&#39;s biggest carmaker, has said it is already feeling the first effects of Brexit, with EU citizens from outside the UK demanding more secure employment contracts and international suppliers less willing to commit to investing in the country.

While JLR will spend between 4 and 4.5 billion pounds on capital expenditure this year, going forward it will expand its product portfolio in a very controlled manner to ensure sustainable, profitable growth, Speth said.

Second-quarter losses at Tata Motors&#39; domestic business narrowed to 2.95 billion rupees from 6.31 billion rupees a year ago, helped by a 30 percent jump in revenues.

Tata Motors Chief Executive Guenter Butschek said work on turning round the company&#39;s domestic car and truck business was underway. The plan focuses on launching new products, reducing costs and consolidating its supply chain, he told reporters.

Tata Motors' consolidated net profit for the quarter ended Sept. 30 rose to 24.83 billion rupees ($382 million) compared with 8.28 billion rupees a year ago, helped by strong demand for Range Rover Velar and other new models.

India's Tata Motors reported a sharp rise in second-quarter profits on Thursday, helped by higher sales of its Jaguar and Land Rover cars, but warned of challenges ahead for its flagship British subsidiary. Jaguar Land Rover (JLR), which has been driving Tata Motors' profits for several years, expects sales in the UK and United States to soften because of competition but is confident of growth in China, JLR CEO Ralf Speth told reporters in Mumbai. "We know that overall the economies are stronger around the world but it's also clear that we see, one or the other, weakness from a political side, from an economy side. Think about Brexit, think about the U.S. at the current moment," Speth said. JLR plans to launch several new products next year including the Jaguar XF Sportbrake sport-utility vehicle (SUV), the E-Pace, a compact SUV, and the I-Pace, its first electric sports car, Speth said after the company announced a three-fold rise in profit. Tata Motors' consolidated net profit for the quarter ended Sept. 30 rose to 24.83 billion rupees ($382 million) compared with 8.28 billion rupees a year ago, helped by strong demand for Range Rover Velar and other new models. Analysts on average had expected a net profit of 14.99 billion rupees, according to Thomson Reuters data. Pre-tax profit at JLR rose 38 percent to 385 million pounds ($505 million) and its margin on earnings before interest, tax, depreciation and amortisation (EBITDA) rose to 11.8 percent from 10.9 percent a year ago. Retail sales of its Jaguar saloons and Land Rover sport-utility vehicles were up 5 percent on the same quarter last year, as an increase in sales in China helped offset lower UK sales. JLR, Britain's biggest carmaker, has said it is already feeling the first effects of Brexit, with EU citizens from outside the UK demanding more secure employment contracts and international suppliers less willing to commit to investing in the country. While JLR will spend between 4 and 4.5 billion pounds on capital expenditure this year, going forward it will expand its product portfolio in a very controlled manner to ensure sustainable, profitable growth, Speth said. Second-quarter losses at Tata Motors' domestic business narrowed to 2.95 billion rupees from 6.31 billion rupees a year ago, helped by a 30 percent jump in revenues. Tata Motors Chief Executive Guenter Butschek said work on turning round the company's domestic car and truck business was underway. The plan focuses on launching new products, reducing costs and consolidating its supply chain, he told reporters.

Tata Motors' second-quarter profits boosted by rise in Jaguar Land Rover sales

Indian shares fell for a fourth straight session on Thursday, led by losses in financials and auto stocks, with Tata Motors weighing on the indexes after its first-quarter results failed to meet expectations.

The automaker&#39;s shares fell as much as 7.2 per cent to their lowest in over a year after the company&#39;s 42 per cent rise in June-quarter profit, helped by a one-off gain related to changes to Jaguar Land Rover&#39;s pension plans, failed to please investors.

Global sentiment was largely weak with Asian stocks falling as investors fretted about the simmering tensions between the United States and North Korea.

&quot;There are some stocks from which investors are shuffling their portfolio out, like pharma ... An element of profit-booking is also coming in which is causing nervousness, but nothing to be perturbed about,&quot; said Deven Choksey, promoter, KR Choksey.

The broader NSE Nifty was down 0.19 per cent at 9,888.90 as of 0544 GMT, while the benchmark BSE&nbsp;Sensex&nbsp;was 0.18 per cent lower at 31,739.23.

The Nifty Auto index fell as much as 2.2 per cent, its biggest percentage loss in over two-and-a-half months. Tata Motors, Eicher Motors and Motherson Sumi Systems pulled the index down, which has risen about 20 per cent this year as of Wednesday&#39;s close.

Financial stocks continued their decline, with the Nifty Bank index dipping 0.5 per cent and the Nifty PSU bank index losing as much as 1.9 per cent.

Nifty Pharma index snapped its six-day losing streak after Aurobindo Pharma&#39;s first-quarter performance and management commentary boosted sentiment. The drugmaker&#39;s shares rose as much as 5.9 per cent.

Indian shares fell for a fourth straight session on Thursday, led by losses in financials and auto stocks

Indian shares fell for a fourth straight session on Thursday, led by losses in financials and auto stocks, with Tata Motors weighing on the indexes after its first-quarter results failed to meet expectations. The automaker's shares fell as much as 7.2 per cent to their lowest in over a year after the company's 42 per cent rise in June-quarter profit, helped by a one-off gain related to changes to Jaguar Land Rover's pension plans, failed to please investors. Global sentiment was largely weak with Asian stocks falling as investors fretted about the simmering tensions between the United States and North Korea. "There are some stocks from which investors are shuffling their portfolio out, like pharma ... An element of profit-booking is also coming in which is causing nervousness, but nothing to be perturbed about," said Deven Choksey, promoter, KR Choksey. The broader NSE Nifty was down 0.19 per cent at 9,888.90 as of 0544 GMT, while the benchmark BSE Sensex was 0.18 per cent lower at 31,739.23. The Nifty Auto index fell as much as 2.2 per cent, its biggest percentage loss in over two-and-a-half months. Tata Motors, Eicher Motors and Motherson Sumi Systems pulled the index down, which has risen about 20 per cent this year as of Wednesday's close. Financial stocks continued their decline, with the Nifty Bank index dipping 0.5 per cent and the Nifty PSU bank index losing as much as 1.9 per cent. Nifty Pharma index snapped its six-day losing streak after Aurobindo Pharma's first-quarter performance and management commentary boosted sentiment. The drugmaker's shares rose as much as 5.9 per cent.

Sensex extends decline, Tata Motors skids

Tamo, which is a sub-brand of Tata Motors, has showcased its first product - RaceMo - at the 87th Geneva International Motor Show. RaceMo is a two-seater sports coupe, which is claimed to change the way India drives.

RaceMo is said to be a perfect blend of Italian sensuality and Indian ingenuity. According to Tamo, it is meant for the risk-taking, adventure loving, digitally native and mobile first technophiles of India.

As described by Tamo, &ldquo;RaceMo is the first in the series of innovations that addresses the challenges driven by the discontinuity and disruption in the automotive industry.&rdquo;

Called India&rsquo;s first connected car, RaceMo is powered by Microsoft and includes connected technologies such as cloud computing, analytics, geo-spatial and mapping, and increased human-machine interface. It is expected to create a new benchmark in the industry for connected vehicles.
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RaceMo is built on a patented MOFlex Multi-Material Sandwich (MMS) structure, which is a structural technology, enabling greater freedom in surface design, efficient large-scale part integration leading to modularity.

Speaking at the launch of RaceMo, Guenter Butschek, CEO &amp; MD, Tata Motors said, &ldquo;We launched our sub-brand Tamo as our answer to new technologies, business models and partnerships. RaceMo is the first innovation from Tamo, and our emotional, unexpected leap to the future.&quot;
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&ldquo;Symbolising the change that is taking place at Tata Motors, RaceMo is the proving ground of the Tamo family of vehicles and will drive the future of India&rsquo;s connected generation. From styling and design to driver experience and technology, RaceMo is an extension of customers&rsquo; personality, as part of their digital ecosystem and will break the ice with a radical new presence and pique the interest in the parent brand,&rdquo; he added.

The Geneva motor show, which is traditionally a neutral ground for the world&#39;s automakers, attracts a wide range of production and concept cars from the entire spectrum of auto manufacturers. Tata Motors has been showcasing its cars at the show since 1998 and this year marks the 20th year of participation.

(WION)

&nbsp;

Tamo RaceMo is touted to be India?s first connected car.

Tamo, which is a sub-brand of Tata Motors, has showcased its first product - RaceMo - at the 87th Geneva International Motor Show. RaceMo is a two-seater sports coupe, which is claimed to change the way India drives. RaceMo is said to be a perfect blend of Italian sensuality and Indian ingenuity. According to Tamo, it is meant for the risk-taking, adventure loving, digitally native and mobile first technophiles of India. As described by Tamo, “RaceMo is the first in the series of innovations that addresses the challenges driven by the discontinuity and disruption in the automotive industry.” Called India’s first connected car, RaceMo is powered by Microsoft and includes connected technologies such as cloud computing, analytics, geo-spatial and mapping, and increased human-machine interface. It is expected to create a new benchmark in the industry for connected vehicles. RaceMo is built on a patented MOFlex Multi-Material Sandwich (MMS) structure, which is a structural technology, enabling greater freedom in surface design, efficient large-scale part integration leading to modularity. Speaking at the launch of RaceMo, Guenter Butschek, CEO & MD, Tata Motors said, “We launched our sub-brand Tamo as our answer to new technologies, business models and partnerships. RaceMo is the first innovation from Tamo, and our emotional, unexpected leap to the future." “Symbolising the change that is taking place at Tata Motors, RaceMo is the proving ground of the Tamo family of vehicles and will drive the future of India’s connected generation. From styling and design to driver experience and technology, RaceMo is an extension of customers’ personality, as part of their digital ecosystem and will break the ice with a radical new presence and pique the interest in the parent brand,” he added. The Geneva motor show, which is traditionally a neutral ground for the world's automakers, attracts a wide range of production and concept cars from the entire spectrum of auto manufacturers. Tata Motors has been showcasing its cars at the show since 1998 and this year marks the 20th year of participation. (WION)

Tamo RaceMo: Tata Motors unveils its first sports car

Tata Motors has launched its hatchback Tiago with automated manual transmission (AMT), which is priced at Rs 5.39 lakh (ex-showroom Delhi).

The Tiago AMT variant will be available across the country at the company&#39;s over 597 sales outlets, Tata Motors said in a statement.

&quot;Due to the continued good response to the Tiago, we are witnessing a month-on-month growth in the immensely competitive hatchback segment. The Tiago has been instrumental in the growth of Tata Motors&#39; brand across the passenger vehicle market,&quot; said Mayank Pareek, Tata Motors President, Passenger Vehicles Business Unit. 
The company is confident that the new variant will further expand the market for Tata Motors.

The Tiago Easy Shift AMT comes with four gear positions - automatic, neutral, reverse and manual. In addition, it also comes with two drive modes - sports and city - for a peppy driving experience and city cruising.

The Mumbai-based auto major had launched the Tiago with manual transmission in April last year, priced between Rs 3.2 lakh and Rs 5.6 lakh (ex-showroom Delhi).

(PTI)

The Tiago AMT variant will be available across the country at the company's over 597 sales outlets

Tata Motors has launched its hatchback Tiago with automated manual transmission (AMT), which is priced at Rs 5.39 lakh (ex-showroom Delhi). The Tiago AMT variant will be available across the country at the company's over 597 sales outlets, Tata Motors said in a statement. "Due to the continued good response to the Tiago, we are witnessing a month-on-month growth in the immensely competitive hatchback segment. The Tiago has been instrumental in the growth of Tata Motors' brand across the passenger vehicle market," said Mayank Pareek, Tata Motors President, Passenger Vehicles Business Unit. The company is confident that the new variant will further expand the market for Tata Motors. The Tiago Easy Shift AMT comes with four gear positions - automatic, neutral, reverse and manual. In addition, it also comes with two drive modes - sports and city - for a peppy driving experience and city cruising. The Mumbai-based auto major had launched the Tiago with manual transmission in April last year, priced between Rs 3.2 lakh and Rs 5.6 lakh (ex-showroom Delhi). (PTI)

Tata Motors launches automatic Tiago in India at Rs 5.39 lakh

Indian carmaker Tata Motors&#39;s quarterly profits went downhill by 96 per cent, owing to Indian government&#39;s sudden decision to replace currency notes and its luxury Jaguar Land Rover unit&#39;s weak performance.

Last year, India&#39;s largest carmaker had recorded a Rs 29.53 billion in the three months ending December last year, but this year the profits plummetted to Rs 1.12 billion.

The company&#39;s revenue fell 4.3 per cent to Rs 685.41 billion.&nbsp;

The company&#39;s commercial vehicles business saw a &quot;demand shrinkage&quot; owing to the Indian government&#39;s shock move in November to withdraw high-value banknotes from circulation, it said.

Prime Minister Narendra Modi&#39;s demonetisation drive removed around 86 per cent of India&#39;s cash at a stroke, triggering massive queues outside banks and a cash shortage that has hit businesses across the country.

&quot;The segment witnessed major pressure with a fall of nine per cent year-on-year&quot; in sales, the company said.

Its Jaguar Land Rover business saw &quot;lower wholesale volumes and relatively weaker product mix... and overall higher marketing expenses,&quot; the company said in its statement.

Shares in Tata Motors, part of the sprawling tea-to-steel conglomerate, fell 7.3 per cent on the Bombay Stock Exchange on Tuesday.

(WION with inputs from AFP)

India's largest carmaker's domestic business was ravaged by demonetisation and further hit by weak sales of its Jaguar Land Rover unit

Indian carmaker Tata Motors's quarterly profits went downhill by 96 per cent, owing to Indian government's sudden decision to replace currency notes and its luxury Jaguar Land Rover unit's weak performance. Last year, India's largest carmaker had recorded a Rs 29.53 billion in the three months ending December last year, but this year the profits plummetted to Rs 1.12 billion. The company's revenue fell 4.3 per cent to Rs 685.41 billion. The company's commercial vehicles business saw a "demand shrinkage" owing to the Indian government's shock move in November to withdraw high-value banknotes from circulation, it said. Prime Minister Narendra Modi's demonetisation drive removed around 86 per cent of India's cash at a stroke, triggering massive queues outside banks and a cash shortage that has hit businesses across the country. "The segment witnessed major pressure with a fall of nine per cent year-on-year" in sales, the company said. Its Jaguar Land Rover business saw "lower wholesale volumes and relatively weaker product mix... and overall higher marketing expenses," the company said in its statement. Shares in Tata Motors, part of the sprawling tea-to-steel conglomerate, fell 7.3 per cent on the Bombay Stock Exchange on Tuesday. (WION with inputs from AFP)

Tata Motors' quarterly profits plummet by 96%

Shareholders of Tata Motors have voted to remove independent director Nusli Wadia from the board of directors.

In the extraordinary general meeting of shareholders held yesterday, 71.20 per cent of the votes polled voted in favour of a resolution moved by promoter Tata Sons seeking his removal, according&nbsp;to a regulatory filing by the company.

Of the 293.60 crore shareholders, 69.93 per cent took part in the voting, of which 70.20 per cent voted for Wadia&#39;s removal and 28.8 per cent against.

On Wednesday, Wadia was removed as independent director from the board of Tata Steel.&nbsp;

(PTI)&nbsp;

A majority of shareholders, just over 70%, voted for Tata Sons' resolution to remove the independent director

Shareholders of Tata Motors have voted to remove independent director Nusli Wadia from the board of directors. In the extraordinary general meeting of shareholders held yesterday, 71.20 per cent of the votes polled voted in favour of a resolution moved by promoter Tata Sons seeking his removal, according to a regulatory filing by the company. Of the 293.60 crore shareholders, 69.93 per cent took part in the voting, of which 70.20 per cent voted for Wadia's removal and 28.8 per cent against. On Wednesday, Wadia was removed as independent director from the board of Tata Steel. (PTI)

Tata Motors removes Wadia from board of directors

The independent directors of the Indian Hotels, a Tata group company, have expressed solidarity with the ousted Tata Sons chairman Cyrus Mistry, endorsing his leadership.&nbsp;

The directors of Tata group&#39;s hospitality arm praised the steps taken by Mistry in &quot;providing strategic direction and leadership to the company&quot;.&nbsp;

IHCL&#39;s directors, including banker Deepak Parekh, Nadir Godrej, Gautam Banerjee, Keki Dadiseth, Vibha Rishi and Ireena Vittal met ahead of the company board meeting on Friday. They reposed faith in Mistry, saying they &quot;unanimously expressed full confidence in him&quot;.&nbsp;

Explaining the reasons for making public their views, IHCL said: &quot;After deliberations, the independent directors came to a view that being a listed company, it was imperative for the independent directors to state their views to the investors and public at large, such that those who trade in securities of the company make an informed decision.&quot;&nbsp;

Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms, including IHCL and Tata Motors.

Sources close to Mistry had stated that after his removal as the chair of Tata Sons, he has decided to dig his heels in his current role at Tata group firms, including Tata Steel, TCS, and Tata Motors. &quot;He will discharge his fiduciary duty as required by law in all his positions in the Tata group&quot;.

(WION with inputs from PTI) 
&nbsp;

The directors of Tata group's hospitality arm praised the steps taken by Mistry in 'providing direction to company'

The independent directors of the Indian Hotels, a Tata group company, have expressed solidarity with the ousted Tata Sons chairman Cyrus Mistry, endorsing his leadership. The directors of Tata group's hospitality arm praised the steps taken by Mistry in "providing strategic direction and leadership to the company". IHCL's directors, including banker Deepak Parekh, Nadir Godrej, Gautam Banerjee, Keki Dadiseth, Vibha Rishi and Ireena Vittal met ahead of the company board meeting on Friday. They reposed faith in Mistry, saying they "unanimously expressed full confidence in him". Explaining the reasons for making public their views, IHCL said: "After deliberations, the independent directors came to a view that being a listed company, it was imperative for the independent directors to state their views to the investors and public at large, such that those who trade in securities of the company make an informed decision." Ratan Tata-led interim management of Tata Sons is seeking to oust Mistry from his positions in the operating group firms, including IHCL and Tata Motors. Sources close to Mistry had stated that after his removal as the chair of Tata Sons, he has decided to dig his heels in his current role at Tata group firms, including Tata Steel, TCS, and Tata Motors. "He will discharge his fiduciary duty as required by law in all his positions in the Tata group". (WION with inputs from PTI)

Ratan Tata-Cyrus Mistry row: Indian Hotels independent directors back ousted chairman Mistry

At the end of August, newspapers in India announced in unusually large headlines that the Apex Court had struck down the acquisition of 997 acres of land in Singur by the Left Front government for Tata Motors. The farmers are to get back their land in its pristine, cultivable form, and they can keep their compensation as well.&nbsp;

While the ruling Trinamool party celebrated, news of a more significant nature cropped up in much smaller fonts. The very next day, farmers in Alisha village in Burdwan demanded back their 10.5 acres of land earmarked for a proposed mishti (confectionery) hub &ndash; they were confident their didi, the chief minister would listen to their plea &ndash; and she did accede to their demands the same day. Last Tuesday, farmers in Raghunathpur in Purulia organised a rally asking for their land which had also been acquired by the Left Front government for an industrial park that has failed to take off.

In a twist of irony, the legal vindication of the very stand that propelled Trinamool to power in the state presents them with an economic problem on a massive scale. The current government is now responsible for cleaning up the act of the previous. Returning the already built land to a cultivable form in a matter of twelve weeks involves humongous expenses. The government is now open to lawsuits from Tata Motors as the MOU had explicitly guaranteed them indemnity against losses in case the land acquisition were to be nullified by a court of law.&nbsp;

On September 17, TATA Motors has&nbsp;demanded from the chief minister of West Bengal a compensation amounting to around Rs 154 crore that they have paid to the erstwhile Left Front regime while buying land for its Nano car project.

The SC verdict has already triggered demands elsewhere in the state for the return of land acquired by the Left Front, and the Trinamool cannot change its stand overnight. The victory, while symbolic, is rather ominous in what it portends for the economic health of the state of West Bengal.

Whatever be the rhetoric being bandied around in Kolkata circles, it is clear to all that the state needs industry: a near-constant supply of agricultural land cannot feed the ever-growing population. Moreover, the reality is that the government does not have the financial capital, technical knowledge, or the organisational ability to launch large-scale development projects, making it necessary to seek private investment in industry. However, while the imperative is clear, what makes land acquisition difficult is the complex interplay of economic calculations and political compulsions, often at odds with each other.&nbsp;

Any change creates its winners and losers. The economic calculation involves estimating whether the overall benefit to the community is larger than the overall loss. Although it sounds simple in theory, there are several difficulties along the way. While those adversely affected (landowning farmers, sharecroppers and landless labourers) are visible, the potential beneficiaries are hard to identify, precisely because the benefits are as yet hypothetical. Similarly, it is very hard to estimate the magnitudes of the losses and benefits. Again, the benefits are harder to measure since a large portion arises indirectly out of the general economic expansion which extends well into the future. Moreover, the corporates are almost expected to oversell the benefits, but the farmers about to lose their land and livelihood are justifiably defensive too: all this makes both the reported gains and losses very hard to take at face value.&nbsp;

As long as the total benefit is larger than the total loss, economic logic dictates that the surplus can always be shared in such a way as to make everybody better off. In other words, there is a range of monetary compensation acceptable to the farmers that would still make the project worthwhile for the entire community.&nbsp;

In practice, however, whether and how the surplus is shared depends entirely on the relative bargaining power of the different groups in question. It is very interesting to note that a large majority of land taken over under Eminent Domain in India was owned by tribal populations, who have had very little representation in the state polity. The Singur fiasco was mostly due to the fact that the Left Front did not realise that they were also politically bankrupt by then, along with financial bankruptcy.&nbsp;

Over time, the legal establishment in India has focused on just compensation and consent while considering legal challenges to land acquisition. The principle of compensation stipulates that the landowners have to be paid the market value of the land they part with. The principle, however, might lead to very inadequate compensation as it does not take into account loss of livelihood of farmers. Moreover, market value itself is a nebulous concept: the very act of earmarking agricultural land for industry increases the market value of the land by orders of magnitude. Therefore, there is a clear incentive for landowners to withhold consent and raise compensation.&nbsp;

Of course, holding out against the government is impossible without strong political organisation: and it is practically impossible for impoverished local communities to self-organise. Typically, a coalition of the opposition party with activist groups and quasi-electoral left outfits have mobilised farmer groups and led the resistance to land takeover. There is virtually no such mobilisation for the beneficiaries of the project, simply because they are diffuse, invisible, unidentifiable, and do not make a compelling media story. &nbsp;

While the rhetoric frames resistance as a challenge to the project itself and ultimately to the authority of the government, it is crucial for the government to interpret resistance as a demand for redistribution. The government cannot engage in a course of action more socially harmful (and often suicidal) than trying to force home the project by using coercion. The responsibility of the government is to identify projects that create a social surplus and use appropriate redistributive measures to ensure everyone in the community benefits from the development project. Such measures go beyond compensation for land: these must involve rehabilitation, providing alternative means of livelihood, retraining, obtaining employment guarantees from the corporate and so on.&nbsp;

But politics creates strange bedfellows. While the affected groups mobilise in order to obtain their rightful share of the surplus from the project, the external mobilisers have very different political objectives. Almost always, their long term goals are better served by a complete shutdown of the project &ndash; the classic instance being that of the Trinamool Congress riding the Singur issue to power in the state. This is where political imperatives of the situation run in complete opposition to economic prudence.

The opponents of land acquisition accuse the government of selling out to the corporates. While it is true that many government officials do enjoy huge kickbacks, the danger of such rhetoric being hardwired in the national psyche is that it can easily become self-fulfilling. If the bargaining between the corporate and the government happens in the shadow of resistance, it only weakens the government&rsquo;s ability to extract concessions. In any case, when different states in the country are desperately competing attract the same corporates, the governments are in a race to the bottom where only the corporate dictates terms.

The Trinamool is in a double bind: land acquisition is political quicksand, and the party is constrained by its past. On the other hand, the state needs industry: the average agricultural landholding cannot sustain a family for more than two generations. In fact, this is what eroded the political capital earned by the Left Front government through land reforms, and forced its desperate lunge for industrialisation. Transformation of the state economy through industry is necessary today more than ever, but those depending on land have a huge stake in the status quo. The current chief minister of West Bengal Mamata Banerjee, more than anyone else, has seen at close quarters the fall of one regime trying to manage the transformation, only time will tell what lessons she has drawn from history.&nbsp; &nbsp;

The government needs projects to create a social surplus and ensure the whole community benefits from development.

At the end of August, newspapers in India announced in unusually large headlines that the Apex Court had struck down the acquisition of 997 acres of land in Singur by the Left Front government for Tata Motors. The farmers are to get back their land in its pristine, cultivable form, and they can keep their compensation as well. While the ruling Trinamool party celebrated, news of a more significant nature cropped up in much smaller fonts. The very next day, farmers in Alisha village in Burdwan demanded back their 10.5 acres of land earmarked for a proposed mishti (confectionery) hub – they were confident their didi, the chief minister would listen to their plea – and she did accede to their demands the same day. Last Tuesday, farmers in Raghunathpur in Purulia organised a rally asking for their land which had also been acquired by the Left Front government for an industrial park that has failed to take off. In a twist of irony, the legal vindication of the very stand that propelled Trinamool to power in the state presents them with an economic problem on a massive scale. The current government is now responsible for cleaning up the act of the previous. Returning the already built land to a cultivable form in a matter of twelve weeks involves humongous expenses. The government is now open to lawsuits from Tata Motors as the MOU had explicitly guaranteed them indemnity against losses in case the land acquisition were to be nullified by a court of law. On September 17, TATA Motors has demanded from the chief minister of West Bengal a compensation amounting to around Rs 154 crore that they have paid to the erstwhile Left Front regime while buying land for its Nano car project. The SC verdict has already triggered demands elsewhere in the state for the return of land acquired by the Left Front, and the Trinamool cannot change its stand overnight. The victory, while symbolic, is rather ominous in what it portends for the economic health of the state of West Bengal. Whatever be the rhetoric being bandied around in Kolkata circles, it is clear to all that the state needs industry: a near-constant supply of agricultural land cannot feed the ever-growing population. Moreover, the reality is that the government does not have the financial capital, technical knowledge, or the organisational ability to launch large-scale development projects, making it necessary to seek private investment in industry. However, while the imperative is clear, what makes land acquisition difficult is the complex interplay of economic calculations and political compulsions, often at odds with each other. Any change creates its winners and losers. The economic calculation involves estimating whether the overall benefit to the community is larger than the overall loss. Although it sounds simple in theory, there are several difficulties along the way. While those adversely affected (landowning farmers, sharecroppers and landless labourers) are visible, the potential beneficiaries are hard to identify, precisely because the benefits are as yet hypothetical. Similarly, it is very hard to estimate the magnitudes of the losses and benefits. Again, the benefits are harder to measure since a large portion arises indirectly out of the general economic expansion which extends well into the future. Moreover, the corporates are almost expected to oversell the benefits, but the farmers about to lose their land and livelihood are justifiably defensive too: all this makes both the reported gains and losses very hard to take at face value. As long as the total benefit is larger than the total loss, economic logic dictates that the surplus can always be shared in such a way as to make everybody better off. In other words, there is a range of monetary compensation acceptable to the farmers that would still make the project worthwhile for the entire community. In practice, however, whether and how the surplus is shared depends entirely on the relative bargaining power of the different groups in question. It is very interesting to note that a large majority of land taken over under Eminent Domain in India was owned by tribal populations, who have had very little representation in the state polity. The Singur fiasco was mostly due to the fact that the Left Front did not realise that they were also politically bankrupt by then, along with financial bankruptcy. Over time, the legal establishment in India has focused on just compensation and consent while considering legal challenges to land acquisition. The principle of compensation stipulates that the landowners have to be paid the market value of the land they part with. The principle, however, might lead to very inadequate compensation as it does not take into account loss of livelihood of farmers. Moreover, market value itself is a nebulous concept: the very act of earmarking agricultural land for industry increases the market value of the land by orders of magnitude. Therefore, there is a clear incentive for landowners to withhold consent and raise compensation. Of course, holding out against the government is impossible without strong political organisation: and it is practically impossible for impoverished local communities to self-organise. Typically, a coalition of the opposition party with activist groups and quasi-electoral left outfits have mobilised farmer groups and led the resistance to land takeover. There is virtually no such mobilisation for the beneficiaries of the project, simply because they are diffuse, invisible, unidentifiable, and do not make a compelling media story. While the rhetoric frames resistance as a challenge to the project itself and ultimately to the authority of the government, it is crucial for the government to interpret resistance as a demand for redistribution. The government cannot engage in a course of action more socially harmful (and often suicidal) than trying to force home the project by using coercion. The responsibility of the government is to identify projects that create a social surplus and use appropriate redistributive measures to ensure everyone in the community benefits from the development project. Such measures go beyond compensation for land: these must involve rehabilitation, providing alternative means of livelihood, retraining, obtaining employment guarantees from the corporate and so on. But politics creates strange bedfellows. While the affected groups mobilise in order to obtain their rightful share of the surplus from the project, the external mobilisers have very different political objectives. Almost always, their long term goals are better served by a complete shutdown of the project – the classic instance being that of the Trinamool Congress riding the Singur issue to power in the state. This is where political imperatives of the situation run in complete opposition to economic prudence. The opponents of land acquisition accuse the government of selling out to the corporates. While it is true that many government officials do enjoy huge kickbacks, the danger of such rhetoric being hardwired in the national psyche is that it can easily become self-fulfilling. If the bargaining between the corporate and the government happens in the shadow of resistance, it only weakens the government’s ability to extract concessions. In any case, when different states in the country are desperately competing attract the same corporates, the governments are in a race to the bottom where only the corporate dictates terms. The Trinamool is in a double bind: land acquisition is political quicksand, and the party is constrained by its past. On the other hand, the state needs industry: the average agricultural landholding cannot sustain a family for more than two generations. In fact, this is what eroded the political capital earned by the Left Front government through land reforms, and forced its desperate lunge for industrialisation. Transformation of the state economy through industry is necessary today more than ever, but those depending on land have a huge stake in the status quo. The current chief minister of West Bengal Mamata Banerjee, more than anyone else, has seen at close quarters the fall of one regime trying to manage the transformation, only time will tell what lessons she has drawn from history.

The political economy of land acquisition for industry: Political reality vs economic prudence

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