Tata Motors Awarded Rs 766-Crore Compensation For Investment In Scrapped West Bengal Plant

New Delhi: In a major setback for West Bengal government, a three-member Arbitral Tribunal ruled on Monday that Tata Motors be awarded a compensation of Rs 766 crore plus interest for its investment in the scrapped Nano plant in Singur.

“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 said in a reported exchange filing.

Ratan Tata had announced setting up of Nano car project at Singur on May 18, 2006 – the day when Left Front’s Buddhadeb Bhattacharjee took oath as West Bengal chief minister for a second term.

The project ran into trouble as farmers protested ‘forcible’ acquisition of land for the Nano project.

Then-Opposition leader and Trinamool Congress (TMC) supremo Mamata Banerjee sat on an indefinite hunger strike against the project. She ultimately called off her protest following appeals by then-President APJ Abdul Kalam and then-PM Manmohan Singh.

In March 2007, Tata signed the Singur land deal lease with government of the day.

Tata announced Nano rollout by October 2008.

But with talks between ruling Left Front and TMC failing, and Mamata continuing her strong protest, Tata suspended work on September 3, 2008. A month later, Tata Motors announced it was moving out Nano operations from West Bengal to Gujarat.

After TMC swept to power by winning the 2011 state assembly elections, CM Mamata brought in an ordinance to take back Singur land. Tata Motors challenged the Singur Act in Calcutta High Court seeking stay on the state government order.

After the high court refused to grant stay, Tata moved the Supreme Court.