Tata Motors rises after court awards compensation for West Bengal investment
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Shares of Tata Motors rose as much as 2% in early trade on Tuesday, before trimming some gains, a day after the company was awarded 7.66 billion rupees ($92.00 million) to compensate for its investment in the Singur plant in West Bengal.
A three-member arbitral tribunal said Tata Motors was entitled to recover the amount from West Bengal Industrial Development Corporation for the loss of investments related to the automobile facility, according to an exchange filing.
The Singur plant, presently closed, was initially set up to manufacture Tata Nano cars with an investment of 10 billion rupees.
Tata Motors had to shift the manufacturing facility from Singur to Sanand in the state of Gujarat in 2008, owing to a land dispute, local media reported.
Shares of Tata Motors were 0.8% higher at 633.7 rupees as of 9:58 a.m. IST, bringing year-to-date gains to 63.4%. The Nifty auto index was up 0.2%.
($1 = 83.2625 Indian rupees)
