Tata Motors to get over Rs 766 crore compensation for losses incurred at West Bengal's Singur plant

Tata Motors stated on Monday that an arbitral tribunal has asked the West Bengal Industrial Development Corporation to pay the company Rs 766 crore compensation in connection with losses incurred due to a land row on its manufacturing site in Singur back in 2008. The matter pertains to a land row, due to which Tata Motors had to shift its plant to produce small car Nano from Singur in West Bengal to Sanand in Gujarat back in October 2008. Tatas, by then, had invested over Rs 1,000 crore in Singur.

In a regulatory filing, the auto major said a three-member Arbitral Tribunal has ruled that the company is entitled to recover from the respondent West Bengal Industrial Development Corporation Ltd (WBIDC) a sum of Rs 765.78 crore with interest thereon 11 per cent per annum from September 1, 2016, till actual recovery thereof.

Tata Motors said, "The aforesaid pending arbitral proceedings before a three-member Arbitral Tribunal has now been finally disposed of by a unanimous award in favour of Tata Motors Limited (TML) whereby the claimant (TML) has been held to be entitled to recover from the respondent (WBIDC) a sum of Rs.765.78 crores with interest thereon @ 11% p.a. from September 1, 2016 till actual recovery thereof. The Claimant (TML) has also been held to be entitled to recover from the respondent (WBIDC) a sum of Rs.1 crore towards the cost of the proceedings."

Singur Plant case | Tata Motors says, "The aforesaid pending arbitral proceedings before a three-member Arbitral Tribunal has now been finally disposed of by a unanimous award in favour of Tata Motors Limited (TML) whereby the claimant (TML) has been held to be entitled to… pic.twitter.com/ivr34191GM

— ANI (@ANI) October 30, 2023

The compensation is in respect to the auto major's claim of compensation from WBIDC under various heads, including the loss of capital investments with regard to the automobile manufacturing facility at Singur.

"This is to inform that the aforesaid pending Arbitral proceedings before a three-member Arbitral Tribunal has now been finally disposed of by a unanimous award dated October 30, 2023, in favour of Tata Motors," the Mumbai-based auto major said.

Tata Motors has also been held to be entitled to recover from the respondent (WBIDC) a sum of Rs 1 crore towards the cost of the proceedings, it added.

"With the making of the final arbitral award as mentioned above, the Arbitral proceedings have come to an end," it added.

In June 2010, Tata Motors inaugurated a new plant in Sanand to produce Nano, which it has ceased to sell now.

The inauguration took place nearly two years after it was forced to shift the plant out of West Bengal due to the land row.

The Sanand plant was inaugurated by the then-Gujarat Chief Minister Narendra Modi and Tata Group Chairman Ratan Tata.

(With Agency Inputs)