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Tata Motors awarded Rs 766 Cr compensation for closure of Singur Nano plant in W Bengal

Tata Motors awarded Rs 766 Cr compensation for closure of Singur Nano plant in W Bengal

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Kolkata: Tata Motors Limited (TML) , which had set up an automobile plant in Singur to produce its fancied small car Nano, is to receive a compensation of RS 765.78 crore in addition to an interest at the rate of 11 per cent per annum since September 2016.

The amount was awarded as compensation to the company for the closure of its Nano car project in Singur. A three-member Arbitral Tribunal that examined the claim of Tata on the West Bengal government for the said compensation with interest. TML informed the National Stock Exchange (NSE) about the award on Monday.

“In respect of the arbitration proceedings between Tata Motors Limited (TML) and West Bengal Industrial Development Corporation Limited (WBIDC), in relation to TML’s claim of compensation from WBIDC under various heads, on account of the loss of capital investments, with regard to the automobile manufacturing facility at Singur (West Bengal), 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 TML," Tata Motors said in an exchange filing.

However, according to legal experts, the state government has the option of challenging the tribunal order at a higher court.

The officials of the WBIDC have claimed that till Monday evening, they have not received any information in this matter.

There was no reaction from the ruling Trinamool Congress till the time of filing of this report.

For background, after coming to power with a thumping majority in 2006, the then Buddhadeb Bhattacharjee-led Left Front government had announced the Nano project at Singur by TML. Accordingly, the work for setting up of the factory started there after the state government finished the process of land acquisition for the project.

However, the problem started after a section of the land-owners refused to accept the compensation cheques and started agitating against the land acquisition.

The Trinamool Congress led by Mamata Banerjee, the principal opposition party at the time, started a massive agitation at Singur against the land acquisition.

In face of the agitation, Tata Group Chairman Ratan Tata finally withdrew from Singur and shifted the factory to Sanand in Gujarat for the Nano projec. The Nano brand has however been phased out since.

After coming to power in 2011, the first decision of the Mamata Banerjee-led Cabinet was to promulgate a new law for return of land at Singur to all the land-owners.

Observers feel that the development has come as a major setback for the West Bengal government just before the Bengal Global Business Summit, the annual event of the state government to showcase Bengal as an ideal investment destination.

While the Trinamool has remained silent so far over the tribunal order, the opposition parties have attacked the state government on the issue.

“This is a penalty that the Trinamool Congress will have to pay for ruining the dreams of thousands of educated youth in the state. I wonder how the state government, which is already saddled with huge accumulated debt, will pay this penalty,” said CPI(M) state Secretary and politburo member, Md Salim.

(With inputs from IANS)

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TAGS:Trinamool CongressTata NanoBusiness NewsBengal Business summitSingurMamata Banerjee govtArbitral Tribunal
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