MY KOLKATA EDUGRAPH
ADVERTISEMENT
Regular-article-logo Wednesday, 03 June 2026

HIND MOTOR BID TO PUSH THROUGH LAYOFF 

Read more below

BY SUTANUKA GHOSAL Published 20.05.99, 12:00 AM
Calcutta, May 20 :    Calcutta, May 20:  Hindustan Motors has filed a cross-objection application in the Calcutta high court, seeking permission to implement the proposed lay-off at its Uttarpara factory. The petition, filed on May 17, has alleged that the state government has no intention to dispose of the matter expeditiously and is only interested in delaying it for as long as possible. The company has said that it is suffering huge losses because it has been refused permission to implement its lay-off plan. Unsold stock of motor vehicles manufactured at the factory has been on the rise. At present, about 800 motor vehicles are lying unsold at the Hind Motor unit. If the present market trend continues, inventories will rise further. In April, the Uttarpara factory produced 1,600 cars but could sell only 1,500. The installed capacity at the unit is 2,500 vehicles per month. On March 26 Justice Pinaki Chandra Ghosh directed the state government to consider the lay-off proposal and pass an order after hearing out all the parties within three weeks? time. The company, in its May 17 petition, has alleged that the state government filed an appeal on May 7, six weeks after the order was passed. The company further said that if it continues to incur losses at the present rate, then its working capital and resources, which have been substantially eroded, will be further depleted and the entire business will be affected. The company claims it is suffering an extra loss of Rs 32 lakh per day because it has not been able to implement the proposed lay-off. The company has said that if the workforce that was and still is maintained by the company at its Uttarpara factory is required to be kept engaged for six days a week, the break-even point would be the production of about 2,300 to 2,500 cars per month, depending on the model-mix. However, the market demand and sale of such cars is at present in the region of 1,200 cars per month. The market demand can be met by the company by working its Uttarpara factory three days a week. Meanwhile, the petition filed by the West Bengal government at the Calcutta high court came up for hearing today. The matter has been adjourned till June 7.    
Follow us on:
ADVERTISEMENT
ADVERTISEMENT