The Tata Motors won an arbitral award on October 30 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.
The Tata Motors stated in an exchange filling that with regards to 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 to that the aforesaid pending Arbitral proceedings before a three member Arbitral Tribunal has now been finally disposed of by a unanimous Award dated 30.10.2023 in favour of TML.
The Tribunal stated that as per the filing the Tata Motors can recover a sum of Rs 765.78 crore with interest thereon at 11 percent per annum from 01.09.2016 till actual recovery thereof from WBIDC. Thus, it is not clear from the filing if the interest is calculated as compound or simple.
It has also been stated by the Tata Motors that it has allowed to recover a sum of Rs 1 crore towards the cost of the proceedings.
Further, Tata Motors stated that, ‘with the final arbitral award as mentioned above, the Arbitral proceedings have come to an end.’