Shares of Tata Motors Limited bounced back over 2 percent to Rs 642 on October 31, a day after the shares plunged nearly 2 percent on the exchanges. The surge comes after the company announced it had won an arbitral award of Rs 766 crore plus interest to compensate for its investment in the now-scrapped Singur plant. The facility was set up to manufacture its Nano car.
"In relation to Tata Motors' claim of compensation from West Bengal Industrial Development Corporation Limited (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," India's leading EV player said in an exchange filing.
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The tribunal ruled in favour of Tata Motors, allowing them to recover a sum of Rs 765.78 crore with interest at 11 percent per annum from September 1, 2016, until the actual recovery from WBIDC. Additionally, Tata Motors has been allowed to recover a sum of Rs 1 crore to cover the cost of the proceedings.
The West Bengal government initially allocated approximately 1,000 acres of farmland to Tata Motors for the construction of a manufacturing plant. However, due to strong protests from political leaders and local farmers, Tata Motors ultimately abandoned its plans to build the plant in West Bengal. However, by then the automaker had already made investments at the site. It later shifted the manufacturing unit to Sanand in Gujarat.
“With the making of the final arbitral award as mentioned above, the Arbitral proceedings have come to an end,” said Tata Motors.
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