Singur shifting costs Tatas Rs. 310 cr

HT Correspondent, Hindustan Times
First Published: 21:38 IST(17/7/2012)
Last Updated: 22:50 IST(17/7/2012)
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Tata Motors spent an estimated Rs. 310 crore towards transferring the plant and machinery for the world’s cheapest car Nano from Singur in West Bengal to Sanand in Gujarat, the company stipulated in its annual report for 2011-12.

After facing resistance from opposition parties in West Bengal, the company was forced to shift the location of the factory in 2008. This is the first time that the company has put a figure to the cost it had to incur while doing so.

“We have stipulated Rs. 310 crore towards shifting the plant, machinery, sheds and buildings from Singur in 2008,” said a Tata spokesperson. “This is just one of the costs that http://www.hindustantimes.com/Images/Popup/2012/7/18_07_12-buss23e.jpgwe incurred.”

The company is seeking an overall compensation of around Rs. 1,400 crore from the state government.

In the annual report, the figure has been categorised under “carrying value” under the head  “capital works in progress” in the consolidated financial statement of the company.

“Capital work-in-progress as on March 31, 2012, includes building under construction at Singur in Bengal of Rs. 310 crore for the purposes of manufacturing automobiles,” notes by auditors said. “In October 2008, the company moved the Nano project from Singur in West Bengal to Sanand in Gujarat. The newly-elected government of West Bengal enacted a legislation on June 14, 2011, which was notified on June 20, 2011, to cancel the land lease relating to the project at Singur.”


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