Hindustan Motors, the CK Birla-owned company has offered voluntary retirement scheme (VRS) to all its employees.
The company, that made the iconic Ambassador, was put under suspension of work since May 24 this year.
The VRS notification was posted on the gate of the company's Uttarpara unit by management, which stated that all workers would be paid their statutory dues and an additional sum of INR 1 lakh each.
The scheme will be be applicable from the 9th of November 9 till the 20th of November. The plant had around 2,300 workers employed.
The famous Ambassador that shot to fame was produced in this very factory. This car was almost synonymous with the Indian Government.
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The company saw a steady decline in sales after the Japanese and the Korean carmakers started selling cars in India.
Along with this, the company was also faced severe lack of monetary input, and not being able to meet the working capital, which led the company to stop manufacturing Ambassadors.
Even government employees started to to opt for other cars made by manufacturers like Tata and Maruti Suzuki.
Hindustan Management said in a statement that the VRS offered to its employees was in line with the restructuring of the plant in Uttarpara.