A ordinance has been signed by Governor MK Narayanan and would be placed in the assembly's next session for passage, said Banerjee calling it a historic day in the chapter of Singur.
"We are happy at the ordinance. The rest 600 acres will be kept open for industry. The Tatas can set up industry if they want," said Banerjee, who held a fast for 26 days asking for the land to be returned.
"If they (Tata) demand compensation without going in for industry on this 600 acres, we will give them compensation through legal means by appointing an arbitrator," she said.
The final decision to give back farmers 400 acres of land at Singur was taken in the first meeting of the cabinet when Mamata Banerjee took over the office on May 20.
"We were committed to the people of Singur to return the 400 acres to the unwilling farmers and we took the decision in our first cabinet meeting," she said.
She further said that the government would get in touch with local MLAs to discuss on how to return 400 acres of land.
Opposition party CPM, on Thursday, Jun 9 slammed the government on their ordinance saying that it cannot be passed in the assembly session.
"Assembly session was on. Assembly was not prorogued. When assembly session was on, ordinance cannot be promulgated," said Surya Kanta Mishra, leader of opposition.