The Railway Board is likely to utilise the undisputed 600 acres for setting-up a coach factory at Singur, the erstwhile site for the Nano project.
"A reply has been sent to the West Bengal government yesterday," the source said. The West Bengal government had offered the entire 997 acres of which it would use 600 acres but it was not clear whether it would take the entire land offered and give back 400 acres.
Although the Railways' apex decision-making body is yet to finalise its plans for the Singur project, it will only undertake the project in the "undisputed" land, which according to Banerjee amounts to some 600 acres, the source added.
Over a year ago, Tata Motors pulled out its Nano project from Singur after an indefinite protest led by Banerjee. Her main demand was the return of 400 acres to unwilling land losers though the state government put the figure at 181 acres.
Legal experts said that there was no provision under the Land Acquisition Act 1894 to return the land. "Once acquired for public purpose it cannot be returned," said sources. The only way to give back the land would be by 'patta' under the Land Reforms Act, but it would have to be used for agriculture.
But it seemed that the people in Singur, who led the agitation, were pinning their hopes on Banerjee. Krishi Jami Raksha Committee convener, Becharam Manna said, "If the state has offered 997 acres to Mamata Banerjee then she will return the land to the land losers."
State government sources said, once the Railway Board approves the project, it would initiate talks with Tata Motors on the issue of compensation.
On his last visit to Kolkata in September, Tata Motors chairman, Ratan Tata had said that he would not stand in the way of any development that might take place on the land. He indicated, he would return the land if compensated.
Sources close to the development said, the sunk cost in the project would be substantial. "It would essentially be the cost of land filling and erecting the structure at the site." Nearly 80 per cent of the work by Tata Motors had been completed when work was suspended at Singur.
Not just Tata Motors, even the vendors would have to be compensated. The West Bengal Industrial Development Corporation (WBIDC) had signed separated lease agreements with the vendors. Tata Motors has renewed the lease for the year and so have most of the vendors.
