Hindustan Motors Makes Part Payment To Workers

By Ganesh

Published: Tuesday, June 3, 2014, 17:30 [IST]

Hindustan Motors, which suspended production of its only product, the iconic Ambassador, at its Uttarpara facility on May 24, has made an interim payment to workers.

The move comes a few days after the West Bengal government held a meeting in which it was decided that the company would make part payment to its workers.

Hindustan Motors paid each of its 2,500 workers Rs 7,000, amounting to a total payment amount of INR 1.75 crore. The delay in payment occurred because the company had to make arrangements for fund, which it now sorely lacks.

Another bipartite between the company and the government is planned to discuss the future of India's oldest existing car manufacturer.

Hindustan Motors was forced to stop production of the Ambassador due to extreme lack of demand. The company had earlier said that it would try to restart production once it had arranged sufficient funds and cleared its debt.

However, such a scenario now seems unlikely as the company has failed to get new investor support.

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