West Bengal might have to pay compensation to Tata Nano suppliers

West Bengal might have to pay compensation to Tata Nano suppliers

Now that Tata is moving their Tata Nano plant to Gujarat from West Bengal, there might be more bad news for the West Bengal government.

They might have to pay out compensation to companies which were setting up their own units in the state to supply parts for the nano model.

Economic Times has quoted one of the vendor supplier as saying: “According to their agreement with West Bengal Industrial Development Corporation (WBIDC), the Nano vendors were given two years to set up buildings at the plant site. A ‘building’ under the terms of the agreement is a four-walled structure. The 30-odd vendors have built such structures much ahead of time. The two year period expires on September 2009. The vendors have spent quite a decent sum for this.”

A West Bengal government representative had this to say in response: “We have not yet received such claims from the vendors. If they ask for compensation, we will have to find out what they actually want.”

Checkout: Nano suppliers may get Rs 250-cr compensation