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Automaker Tata Motors on Monday said the company has won an arbitral proceedings against the West Bengal Industrial Development Corporation (WBIDC) in relation to its claim of compensation on account of the loss of capital investments with regard to the now scrapped Tata Nano manufacturing facility at Singur in West Bengal.
The automajor has secured an arbitral award of ₹765.78 crore, plus interest as compensation for its investment in the Singur plant. The company had been building the facility to manufacture the ambitious Tata Nano, but it was forced to scrap the project.
“On account of 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 TML,” Tata Motors said in a stock exchange filing.
The company said it had been held to be entitled to recover from the WBIDC a sum of ₹765.78 crore with interest thereon at the rate of 11 per cent per annum from September 1, 2016 till actual recovery thereof. It has also been allowed to recover a sum of ₹1 crore from WBIDC towards the cost of the proceedings.
Tata Motors had to relocate its plant to produce Nano from West Bengal’s Singur to Gujarat’s Sanand in 2008, following a strong anti-land acquistion protest.
The erstwhile Left Front government had acquired nearly 1,000 acres of land in Singur in 2006 and handed it over to Tata Motors to build a manufacturing facility. But the land acquisition was opposed by the then opposition leader and Trinamool Congress chief Mamata Banerjee. Eventually, the automaker had to shelve the Singur project.
Banerjee, the current West Bengal Chief Minister, last year claimed that she did not drive Tata Motors out of the State, but the CPI(M) did. Her remarks relating to the movement against alleged forcible land acquisition for Tata Motors small car project at Singur evoked strong reaction from the opposition, particularly the CPI(M) leadership, which called Banerjee’s remarks “lies”.
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