India, Aug. 7 -- The West Bengal government has initiated talks with the Tata Group to set up new industries and resolve a legal dispute over compensation of Rs.765.78 crore that the previous government under the Trinamool Congress (TMC) did not pay to Tata Motors for losses suffered in aborting the Nano car project at Singur in 2008 following a two-year agitation by then-opposition leader Mamata Banerjee, officials aware of the matter said.

"Our officers went to Mumbai this week and talked to the Tata Group. Of course, we want them to return to Bengal. Had Mr Ratan Tata been alive I would have touched his feet and requested him to set up an industry here," industry minister Tapas Roy said.

"Our state is saddled with debts piled up by t...