The talks, marked by twists and turns, was salvaged from the verge of collapse this evening following a last-minute demand by Banerjee, after a consensus was reached earlier, that land of all farmers acquired of vendors of ancillary units of the Tata Motors Nano car plant at Singur be returned to farmers. The near-breakdown of talks was, however, resolved at the initiative of Gandhi.

After the meeting, Banerjee said: “It is a victory for us. You have seen how we have fought for the Singur farmers for the past two years. We are happy.”

Bhattacharjee did not make any comment. The announcement of the truce was greeted with bursting of crackers in many parts of Kolkata. Celebrations were on at Singur too as Banerjee headed there to make a formal announcement.

Earlier in the day, CPM general secretary Prakash Karat, asked about Singur, told reporters in New Delhi: “We are of the view that the Tata’s small car project goes ahead and measures are taken for rehabilitation of those affected.”

The West Bengal Left Front committee also met at Alimuddin Street where Bhattacharjee briefed the partners about the land-based rehabilitation package that had been offered during the negotiations. The Front partners authorised him to seal the final rehabilitation package with the Opposition.