Tata Motors had a meeting with its dealers on Thursday in Mumbai to talk about the recompense claimed by 18 dealers, who had put in money in the Singur plant construction and suffered losses due to Nano plant transfer. After the discussions, dealers smiled as Tata Motors has agreed to reimburse for the losses.
Tata Motors would also pay 75% of the money to dealers due to the losses that Singur faced. However, the truth is that the company has stated that it will be unable to pay dealers in cash and thereby they have demanded the dealers to take loan. There is also an option for Tata Motors that it would pay the dealers through a tri-partite pact with bank and dealers. Therefore, they will pay principal and interest.
Tata Motors would offer dealers reimbursement for transfer costs. Also, they would offer land in Sanand on comfortable conditions and probably lend on lease, which is a relief to dealers.
According to the sources, dealers are not really content with the reimbursement deal, as they wanted Tata Motors to compensate them completely. The reimbursement amount comes to about Rs.100 crore, which Tata Motors would have paid the dealers. In the meantime, dealers were also let down as the company’s balance sheet was weak.
Nonetheless, it is promising for dealers that they would get some amount of money back.