Veteran Marxist leader Jyoti Basu on Friday welcomed Trinamool Congress chief Mamata Banerjee's readiness to sit with the Tatas for finding a solution to the Singur small car factory controversy.

"It is a welcome steps that Mamata Banerjee has agreed to a discussion with the Tatas. The project cannot be blocked.

Whatever she has to say, let her say in the discussion. Tatas also won't go," the 95-year-old leader told newsmen in Kolkata after attending the party state secretariat meeting.

Asked whether the state government would take any initiative for the dialogue, he said, "A special compensation package can be worked out."

In an apparent softening of her belligerent stand on the Tata Motors' [Get Quote] plant at Singur, Mamata Banerjee said on Thursday

she was open for talks with the Tatas who responded within hours, saying it was not averse to talks with anyone.

"If the Tatas want to talk to us, we will respond. That is a matter of courtesy," Mamata told reporters when asked what she would do if the Tatas wanted to talk to her.

"We will tell the Tatas to ask the state government to return the 400 acres to the unwilling farmers. We are not for any confrontation. The problem can be solved if 400 acres is returned. There should not be any ego clash," she said.

Reacting to her statement, a spokesperson of Tata Motors said, "The company is not averse to talking to anyone."