Mumbai, Mar 22: Tata Motors is reportedly all set to pay compensation to the Nano vendors, who were hit with losses when they were forced to shift to Gujarat from West Bengal following political agitation.
Disputes over payments for land forced the automobile giant out of Singur, West Bengal and relocate to Sanand in Gujarat in Oct 2008.
A media report published on Monday, Mar 22 said that the compensation package is estimated at Rs 2 billion ($44 million). The compensation is said to cover 75 per cent to 80 per cent of the losses incurred by the vendors during the relocation.
At the same time, the automobile major has taken a decision to retain 997 acres at Singur and renew the lease, which expires on Mar 31, reported The Economic Times.
"We have done everything possible to help our vendors. We cannot quantify the size of the compensation package. It will vary from vendor to vendor depending on how much amount they had invested in our units," a company spokesperson is quoted as saying.
While the country's first Nana was rolled of the production unit in Pantnagar in Uttarakhand in Jul 2009, the Gujarat unit is expected to bring out a Nano later in 2010. The process of production is scheduled to begin in Apr 2010.