This arbitration stems from a dispute between Tata Motors Limited (TML) and the West Bengal Industrial Development Corporation Limited (WBIDC). The conflict pertained to TML’s claim for compensation from WBIDC, covering various aspects of capital investments. These investments were related to the automobile manufacturing facility in Singur, West Bengal. The long-pending arbitration proceedings were recently concluded by a unanimous award issued on October 30, 2023, favoring Tata Motors.
“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 whereby the claimant (TML) has been held to be entitled to recover from the respondent (WBIDC) a sum Rs.765.78 crore with interest thereon @ 11% p.a. from September 1, 2016 till actual recovery thereof,” the company said.
“The Claimant (TML) has also been held to be entitled to recover from the respondent (WBIDC) a sum of Rs.1 crore towards cost of the proceedings.,” it further stated in an exchanges filing.
Under the award, Tata Motors is entitled to recover a total sum of Rs 765.78 crore, in addition to an 11 percent per annum interest, commencing from September 1, 2016, until the full recovery is achieved from WBIDC.
This development represents a significant milestone for Tata Motors, as it underscores their successful pursuit of compensation for the capital investments associated with the Singur plant. The award not only acknowledges the merit of their claim but also has financial implications that will support the company’s ongoing operations and endeavors.