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NEW DELHI: Tata Motors on Monday announced that they have secured an arbitral award amounting to Rs 765.78 crores as compensation for their investment in the now-defunct Singur plant.
“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,” Tata Motors said in a statement.
“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,” it added.Following stiff resistance by the Trinamool Congress led by then opposition leader Mamata Banerjee alleging forcible acquisition of farmland, Tata Motors announced pulling out of the Singur plant set up to manufacture ‘Nano’ car in 2008.
Tata Motors had to shift its plant to produce small car Nano from Singur in West Bengal to Sanand in Gujarat. Tatas, by then, had already put over Rs 1,000 crore in Singur. It delayed not only the original plans for the commercial launch of Nano by about five months, but also affected its availability.
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.
With the making of the final tribunal award, the arbitral proceedings have come to an end, the company said.
(With agency inputs)
“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,” Tata Motors said in a statement.
“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,” it added.Following stiff resistance by the Trinamool Congress led by then opposition leader Mamata Banerjee alleging forcible acquisition of farmland, Tata Motors announced pulling out of the Singur plant set up to manufacture ‘Nano’ car in 2008.
Tata Motors had to shift its plant to produce small car Nano from Singur in West Bengal to Sanand in Gujarat. Tatas, by then, had already put over Rs 1,000 crore in Singur. It delayed not only the original plans for the commercial launch of Nano by about five months, but also affected its availability.
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.
With the making of the final tribunal award, the arbitral proceedings have come to an end, the company said.
(With agency inputs)
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