Calcutta, May 3: Hindustan Motors has withdrawn the pay cuts it had imposed in January.

The move takes effect from the April salary, the company’s corporate affairs chief Soni Srivastava told The Telegraph.

In January, the automobile company had slashed the salaries of executives by 10 per cent; workers at the Uttarpara factory also agreed to take a cut of Rs 400 a month.

The latest development is likely to reap political dividends for Shantasree Chatterjee, MP, and president of the Citu-led union at the Uttarpara factory.

Chatterjee, whose Serampore constituency will go to the polls on May 7, had been criticised by the Trinamul Congress and the BJP for allowing the management to get away with the cuts.

According to Srivastava, production of Ambassadors at the Uttarpara plant is expected to increase in the current year compared with just 6,000 units last fiscal.

The company is expecting a major order from the defence forces.

Last year, the defence authorities had withheld the final placement of an order to the company. Negotiations are on, and a bulk order is likely to be finalised soon, she said.

Maloy Chowdhury, executive vice-president and in-charge of the Uttarpara factory, said the company was also pinning its hope on the taxi replacement market.

The sub-light commercial vehicle, Winner, launched last year, is also expected to bring about a distinctive change in the production pattern.

The sub-LCV category, with a pay load of less than three tonnes, is the fastest growing commercial vehicle segment, selling more than 15,000 units per month, Chowdhury said.

“The Winner with a pay load of 1 tonne, compared with 750 kg for the Tata Ace, will certainly be a preferred vehicle for small transport operators,” Chowdhury said.