Singur-Nano plant case: Tata Motors wins compensation of Rs. 766cr
Tata Motors has been awarded an arbitral sum of Rs. 766 crore plus interest in the Singur plant case. The company had initially planned to construct the plant for producing the Tata Nano, but the project was eventually abandoned. The arbitration process involved Tata Motors Limited (TML) and West Bengal Industrial Development Corporation Limited (WBIDC), with TML seeking compensation for the loss of capital investments in the automobile manufacturing facility at Singur, West Bengal.
Unanimous award in favor of Tata Motors
The Arbitral Tribunal, consisting of three members, unanimously ruled in favor of Tata Motors, effectively concluding the pending proceedings. As per the company's exchange filing, the tribunal determined that Tata Motors is entitled to recover an amount of Rs. 765.78 crore, along with an 11% interest per annum from September 1, 2016, until the actual recovery from WBIDC. However, it remains unclear whether the interest calculation is compound or simple.
Recovery of costs and end of arbitral proceedings
In addition to the awarded amount, Tata Motors has been granted permission to recover Rs. 1 crore for the cost of the proceedings. The company announced that "the Arbitral proceedings have come to an end" following the final arbitral award. This outcome signifies a crucial turning point for Tata Motors, as it settles a long-standing disagreement concerning its investment in the now-defunct Singur plant.
