Tata: Tata Motors has emerged victorious in a long-standing dispute with the West Bengal Industrial Development Corporation Limited (WBIDC) regarding the Singur manufacturing unit, which is now closed. Following the resolution, the company is set to recover ₹766 crore from WBIDC.
Award and Interest
The arbitral tribunal ruled in favor of Tata Motors and determined that it should receive ₹765.78 crore. Furthermore, WBIDC has been directed to pay interest at an 11% annual rate on the amount, calculated from September 1, 2016, until the actual recovery.
Market Response
Tata Motors’ stock experienced a 1.71% decrease, closing at ₹460 per share on the Bombay Stock Exchange (BSE) on Monday.
Background
In the past, Tata Motors had acquired approximately 1,000 acres of farmland from the West Bengal Government for the construction of a manufacturing plant. However, the company encountered strong opposition from political leaders and local farmers, prompting a change in plans and a shift to an alternate location. Nevertheless, Tata Motors had already invested in the Singur site. Subsequently, the company relocated its manufacturing unit to Sanand in Gujarat.
The Sanand plant was initially responsible for producing the Tata Nano, a car that is no longer in production. The Gujarat facility was inaugurated two years after the Singur controversy, with the inauguration featuring then-Gujarat Chief Minister Narendra Modi and Tata Group Chairman Ratan Tata. Despite facing numerous challenges, including political and technical obstacles, Ratan Tata’s vision of producing a car priced at just ₹1 lakh was realized. However, the sale of the Tata Nano was discontinued in 2020.
Also Read: ABC sends Chandrababu Naidu to 14-day judicial remand in corruption case
Keep watching our YouTube Channel ‘DNP INDIA’. Also, please subscribe and follow us on FACEBOOK
