Tata Motors shares rose 2% in early trade on Tuesday, before paring some gains, a day after the company was compensated 7.66 billion rupees ($92.00 million) for investment in its Singur plant in West Bengal.
A three-member arbitral tribunal said Tata Motors was entitled to recover money from the West Bengal Industrial Development Corporation for investment losses related to automobile facilities, according to an exchange filing.
The currently closed Singur plant was initially set up to manufacture Tata Nano cars at an investment of Rs 10 billion.
A land dispute forced Tata Motors to shift its manufacturing facility from Singur in Gujarat state to Sanande in 2008, local media reported.
Shares of Tata Motors were 0.8% higher at Rs 633.7 as of 9:58 am IST, bringing year-to-date gains to 63.4%. The Nifty Auto index rose 0.2%.
