Tata Motors is set to receive Rs 766 cores compensation from the West Bengal Industrial Development Corporation (WBIDC) after an arbitral tribunal directed so for the losses incurred on Tata's manufacturing site in Singur.
Tata Motors had to shift its plant to produce the Nano car from Singur in West Bengal to Sanand in Gujarat in October 2008 following a land row. By the time, Tata had already invested over Rs 1,000 crore in Singur.
Tata Motors in a regulatory filing said that a three-member Arbitral Tribunal ruled that the company is entitled to recover from West Bengal Industrial Development Corporation a sum of Rs 765.78 crore with interest of 11 per cent per annum from September 1, 2016, till actual recovery.
Moreover, Tata Motors will also be entitled to recover Rs 1 crore, a sum incurred towards the cost of the proceedings from WBIDC.
It may be noted that Tata Motors had inaugurated a new plant in Sanand to produce Nano cars in June 2010. The inauguration took place after two years following the forceful change in plans and having to shift its plant out of West Bengal over the land row.