Tata Motors Update: There is news of great relief for Tata Motors. After the closure of the plant set up for the manufacturing of Lakhtakia car Nano in Singur, West Bengal, Rs 766 crore will be received along with interest as loss on investment. A three-member arbitration tribunal i.e. Arbitral Tribunal has given this decision in favor of Tata Motors.
Tata Motors said in a regulatory filing that there is a dispute between Tata Motors Limited and West Bengal Development Corporation Limited (WBIDC) regarding compensation of Tata Motors from WBIDC for capital loss on investment made on the automobile manufacturing plant in Singur. A hearing was going on in the Arbitral Tribunal regarding the claim. The China-member arbitral tribunal has unanimously ruled in favor of Tata Motors Limited on October 30, 2023.
The tribunal said in its order that Tata Motors can recover Rs 765.78 crore from West Bengal Development Corporation Limited with 11 percent interest annually from September 1, 2016. Tata Motors said that the tribunal has also ordered to recover the expenses of Rs 1 crore incurred on this hearing. With this decision of the arbitral tribunal, the ongoing hearing regarding arbitration has now ended.
The CPM government of West Bengal had allotted 1000 acres of agricultural land in Singur to Tata Motors to make the Lakhtakia car Nano. On which Tata Motors had also invested in a plant to make cars. But there has been huge political opposition to this allocation which was led by the current Chief Minister of the state Mamata Banerjee. Farmers also opposed the land allotment. Due to this protest, Tata Motors canceled the decision to set up Lakhtakia car plant. Tata Motors later set up the Nano car plant in Sanand, Gujarat. However, now the company has stopped the production of Nano car.
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