Tata Motors (NYSE:TTM) Limited (TML) has won an arbitral award of INR 766 crore ($10.3 billion) in a dispute with the West Bengal Industrial Development Corporation Limited (WBIDC). The conflict was over capital investments made by TML in the defunct Singur plant, originally set up for the production of Tata Nano cars.
The award, announced on Monday, October 30, 2023, was a unanimous decision by a three-member arbitral tribunal. According to the ruling, WBIDC is obliged to pay TML INR 765.78 crore plus an annual interest of 11%, calculated from September 1, 2016, until full repayment is made. On top of this substantial amount, WBIDC is also mandated to pay an additional INR 1 crore to cover the cost of proceedings.
This decisive ruling resolves a longstanding dispute between TML and WBIDC regarding the Singur automobile manufacturing facility. The arbitral award not only grants TML the right to recover its capital investment but also acknowledges the significant costs borne by the company throughout the arbitration process.
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