Compensation for Singur Vendors from Tata Motors

Tata Motors is ready with its compensation package for vendors who had set up their units at its near-ready Nano plant in Singur, West Bengal. Tata Motors had to shift its Singur plant to Sanand in Gujarat owing to the fierce opposition faced in West Bengal led by Trinamool Congress. The package will off-set at least 80 percent of the losses incurred by Nano vendors due to relocation of their units. It is expected that Tata Motors will announce the compensation package to be around Rs. 200 crores.

“The company’s move to enter into a compensation package with vendors has been triggered by a recovery in automobile sales. Secondly , Tata Motors also wants vendors to be ready with their units at Sanand before commercial production kicks off and therefore has come forward with the compensation package,” said a Delhi-based vendor, which supplies chassis and heavy-duty stampings to Tata Motors for Nano.

A Tata Motors’ spokesperson clarified that a fixed amount of compensation package is not in place for the vendors. Compensation will actually vary according to the investments made by each vendor while setting up the plant.

On the other hand, vendors are not only holding their land in Singur but are also waiting for Tata Motors to take a call while talking to the West Bengal government. The West Bengal Industrial Development Corporation had earmarked about 290 acres adjacent to the Tata Motors plant for the vendors’ park at Singur.

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