Tata Motors may compensate vendors for Nano relocation

KOLKATA: Tata Motors Limited, which relocated its Nano project from Singur in West Bengal to Sanand in Gujarat, is looking into the possibility of compensating the vendors who had been adversely affected by the move.

"Tata Motors is a company of extremely high integrity and will help the vendors as far as possible," Managing Director of Tata Ryerson Sandipan Chakrabarti told media.

Tata Ryerson was one of the major vendors for the Nano plant besides others like Caparo Engineering and Bosch Chassis Systems.

Sources familiar with the development said that the vendors had come to Singur at the behest of the Tatas. Now with the relocation, they would naturally feel aggrieved, they said.

"In this current market condition, it would be difficult for the vendors to absorb the sunk cost," a source said. Under such circumstances, Tata Motors may show a positive gesture towards the affected vendors, sources said.

A total of 60-odd vendors were to set up their units at Singur for supplying components for Nano.

Source : Economic Times (2/12/2009)