After moving to Sanand, Gujarat due to a political agitation in Singur, West Bengal, Tata Motors has decided to compensate its vendors who were forced to move to Sanand after the company announced its decision.

While the company expects to start the commercial production from Sanand by April this year, the company has also agreed to retain the 997 acres of land at Singur as the lease agreement will be ready for renewal by March 2010.

The company will be compensating for the losses of the vendors in a phased manner and will not do it at a single go. The package is estimated to be in the tune of Rs. 200 crore. Market watchers believe that the company will take care of almost 75-80% of the losses faced by vendors in developing their shops at Singur.

While the company is still waiting to sort its issues with the West Bengal government, the automaker will be rolling large nos. of Nano by April. It is expected that once the Sanand plant gets operational, the company will reach the high targets of unit volumes as desired.