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Indian commercial vehicle manufacturer, Ashok Leyland has announced that they have received the go-ahead from the local government to restart production operations in the country.
The company will be resuming operations at its Alwar, Bhandara facility and at their Pantnagar plant as well. However, ahead of the restart of actual production, the company is first accessing its supply-chain readiness while also looking into the market demand.
The decision to restart operations is part of the Ministry of Home Affairs recent directive. According to the new guidelines of the Home Affairs Ministry, all private industries and establishments situated in rural areas can resume operations post the 20th of April 2020.
Having said this, these industries will be allowed to run with just one shift and a production capacity of just 20%. Also industries which resume operations, will have to strictly adhere to the guidelines, ensuring the health and safety of their workforce.
N V Balachandar, President-HR, Communication & CSR, Ashok Leyland stated:
"The Ashok Leyland plants at Alwar, Bhandara and Pantnagar have received permission from the relevant Government Authorities to resume operations. We are currently working out the supply chain readiness post which will resume operations and commence production in line with demand."
Ashok Leyland is the third automotive industry, after Maruti Suzuki and Bajaj Auto to receive permission to resume operations. Maruti Suzuki got the go-ahead to restart production at their Manesar facility alone, while all other facilities continue to remain closed.
Bajaj Auto, on the other hand, has resumed operation at two of its facilities; one at Aurangabad and the other at Rudrapur. Its main Chakan plant in Pune, however, has been ordered to remain shut until the 27th of April 2020.
There is however no news currently of any other vehicle manufacturer resuming operation in India. Tata Motors did, however, announce that its JLR operations in Solihull, UK will resume production from the 18th of May. Tata Motors themselves haven't announced any such plans for their Indian facilities yet.
Thoughts On Ashok Leyland Resuming Operations In India
Resuming operations after a month of shutdown will definitely come as a major financial relief for many vehicle manufacturers. The month-long shutdown has put multiple companies under huge financial burdens and the restart of operations, even in limited numbers, should help ease the cash crunch by a certain margin.