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WBIDC indemnified Tata's Singur project

 

PTI | Kolkata, July 15, 2011 20:32
Tags : Singur land by West Bengal government |Tata Motors Limited | Calcutta High Court | WBDIC |Tata Motors | Samaraditya Pal |West Bengal Industrial Development Corporation | TML |
 

On the first day of hearing on the writ petition challenging the re-possession of Singur land by West Bengal government, Tata Motors Limited told the Calcutta High Court that WBDIC had agreed to an indemnity clause in case of any loss incurred by the lessee.

Appearing for Tata Motors, Samaraditya Pal submitted before Justice Saumitra Pal that lessor West Bengal Industrial Development Corporation had agreed to indemnify the company in case it suffered losses of any kind.

The indemnification amount would be equivalent to the actual expenditure incurred by the company on the project, he said. The indemnification clause was a part of the leased agreement signed between Tata Motors and WBIDC on behalf of West Bengal government, he said.

He said the factual background was required to be placed before the court and 997.11 acre was acquired comprising five mouzas under the Singur police station for public purpose and at public expense.

He submitted West Bengal government was of the view that since the state had lagged behind in terms of industrialisation and unemployment was rampant, the project would have a demonstrative effect and also generate employment to 2000 directly and 10,000 indirectly, which was a public purpose.

The petitioner also pointed out that the Calcutta High Court had on January 18, 2008, upheld the validity of land acquisition which was challenged through a PIL and subsequently challenged in the Supreme court and a decision on which was still pending.

TML maintained it was offered land by Uttarakhand government and also granted fiscal incentives to keep the price of the car at Rs one lakh. West Bengal government approached TML and agreed to offer fiscal incentives to match Uttarakhand's offer, following which the company agreed to locate the project in West Bengal.

Justifying the necessity to park the vendors within the plant premises, the petitioner submitted the supply chain of raw materials were to be delivered at best available rates for the project to take off. He said the actual acquisition of Singur land was 997.11 acre under the Land Acquisition Act of 1894. The matter would again come up forĀ  hearing on Monday.

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Issue Dated: Feb 5, 2017