The West Bengal government is in talks with the Tata Group to bring fresh investments to the state, Industry Minister Tapas Roy said on Sunday. Discussions are ongoing to bring Tata back into the state’s economy.
Tata Motors withdrew from its Singur plant in October 2008 and moved its Nano project to Sanand in Gujarat after prolonged agitation over land acquisition led by TMC chief Mamata Banerjee. The exit left a gap that the state hopes to fill.
The Tata Group already operates in West Bengal in several sectors, including IT services, metals, hospitality and retail. The government is exploring whether Tata wants to expand these existing businesses or start new units.
When asked about paying the arbitral award and interest to Tata Motors, Roy declined to comment. He said the state needs to contemplate such issues.
An arbitral tribunal awarded Tata Motors Rs 765.78 crore on 30 October 2023, with interest at 11% per annum, for its withdrawal from the Singur project. The award also includes the interest component.
Roy noted that the previous TMC government left the BJP government with the liability of paying the award and interest. He did not elaborate on how the payment would be made.
The West Bengal Industrial Development Corporation (WBIDC) challenged the arbitral award in the Calcutta High Court in February this year when the TMC was in power. The challenge is still pending.
The government is looking for ways to attract Tata’s investment while addressing the financial obligations that arose from the Singur dispute. The outcome will shape the state’s industrial future.