Tata Motors wins arbitral award of Rs 766 crore plus interest in Singur plant case

Tata Motors was building the plant to manufacture the ambitious Tata Nano there.

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26 Aug, 2025 12:21

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Tata Motors on October 30 said the company has won an arbitral award of Rs 766 crore plus interest to compensate for its investment in the now scrapped Singur plant. Tata Motors was building the plant to manufacture the ambitious Tata Nano there.

“In respect of the arbitration proceedings between Tata Motors Limited (TML) and West Bengal Industrial Development Corporation Limited (WBIDC), in relation to TML’s claim of compensation from WBIDC under various heads, on account of the loss of capital investments, with regard to the automobile manufacturing facility at Singur (West Bengal), this is to inform that the aforesaid pending Arbitral proceedings before a three member Arbitral Tribunal has now been finally disposed of by a unanimous Award dated October 30, 2023 in favour of TML,” the company said in a n exchange filing.

According to the filing, the tribunal said Tata Motors can recover a sum of Rs 765.78 crore with interest thereon at 11 percent per annum from September 1, 2016 till actual recovery thereof from WBIDC. It was not clear from the filing if the interest is calculated as compound or simple.

Tata Motors said it has been allowed to recover a sum of Rs 1 crore towards the cost of the proceedings.

“With the making of the final arbitral award as mentioned above, the Arbitral proceedings have come to an end,” said Tata Motors.

The West Bengal government had allotted about 1,000 acre farmland to Tata Motors to build a manufacturing plant. However, after stiff protest from political leaders and farmers in the area, the company decided to scrap its plans. However, by then the automaker had already made investments at the site. It later shifted the manufacturing unit to Sanand in Gujarat.