Tata Singur Nano Case - Carmaker To Get Rs. 766 Crore Compensation

Back in 2006, Tata Motors received an allocation of approximately 1,000 acres of land for the establishment of a manufacturing plant aimed at producing the world's most affordable car, the Tata Nano. Tata Motors had indeed initiated the construction of the plant in early 2007. However, shortly thereafter, the situation took a turn for the worse. Although land acquisition had drawn criticism from local farmers and politicians since late 2006, the opposition intensified over the following years, culminating in several protests. Faced with an ongoing lack of resolution, Tata Motors was compelled to make the difficult decision to withdraw from the agreement and abandon the Singur plant.

Tata Motors relocated its plant to Sanand after the contentious issues in Singur, where it commenced production of the Nano in June 2010. The Nano is no longer in production, and Tata Motors ceased its sales in 2020. The project, initially aimed at creating a car priced at only Rs 1 lakh, faced multiple technical and political challenges since its inception in 2003. The inauguration of the Sanand plant took place nearly two years after Tata Motors was compelled to move its unit out of West Bengal. The opening of the Sanand facility was attended by then Gujarat Chief Minister Narendra Modi and Tata Group Chairman Ratan Tata.

In a regulatory filing, Tata Motors reported that the 3-member arbitral tribunal has ruled in favour of the company, stating that it is entitled to recover Rs 765.78 crore from WBIDC, along with an 11 percent per annum interest from September 1, 2016, until the actual recovery. This compensation pertains to Tata Motors' claim against WBIDC for losses associated with the Singur manufacturing facility.