Tata Motors to compensate Nano vendors

Tata Motors, the leading car maker in India has come-up with a compensation package for Tata Nano vendors who had to relocate their units to Sanand in Gujarat from Singur in West Bengal due to a series of agitations at that time. Surprisingly the company has decided to retain its previously acquired 997 acres of land at Singur by renewing the lease, which is going to expire by the end of this month.

On the other hand in Sanand, the company has decided to start the commercial production of the Tata Nano model by the starting of next month. It is expected that the company will compensate the Tata Nano vendors in a phased manner instead of completing the process in one go.

It is learned that Tata Motors wants its vendors to be ready with their units at Sanand plant and therefore the company has come-up with this compensation package. The compensation package is expected to cost Tata Motors upto Rs 200 crore which is sufficient to take care of at least 75-80% of the losses occurred with Tata Nano vendors.

However, the Tata Nano vendors are still hoping that Tata Motors and government of West Bengal will come-out with a conclusion on land acquisition in Singur. On the other hand the State Industrial Development Corporation has reserved about 290 acres of land, named as Vendors' Park near Tata's Singur plant. According to Tata Motors Spokesman, “The Singur land is still with us and we will retain it. The payment to renew the lease will be done as and when required.”

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