Tata Motors, which had recently announced a six-day block closure of its heavy commercial vehicle (HCV) plant here between January 12 and 17, reversed its decision on Saturday saying it was rescheduling production and would therefore keep the unit open.
The company had earlier said that in view of the slowdown it was witnessing in the offtake of vehicles, it would go for a six-day block.
A statement issued by the company here on Saturday said the company’s commercial vehicle plant here “will have normal operations from January 12 to 17 due to changes in production schedules.”
The auto major has so far taken four block closures during the current year starting from the first one between November 6 and 8, the second November 25-29, the third December 8-13 and the fourth December 28-31.
Severely hit by the slowdown at Tata Motors here, the 800 small and medium ancillary units of the auto major have already taken several measures to tide over the shortage of orders they are facing, including laying off of staff and asking remaining employees to accept a 40% pay-cut.
The Adityapur Small Industries Association (ASIA), which represents the ancillary units, has already approached banks and the state government for relief packages for the units in terms of rescheduling of loans, deferment of interest payment, providing soft loans, rescheduling payment of value-added tax and by way of asking Jharkhand State Electricity Board to bill the units as per their actual power consumption and not as per the ‘fixed charge’ agreed upon in the past.
Of the around 72,000 workers with direct/indirect employment at the ancillary units here during normal times, around 8,000 have already been laid off, while the fate of another 14,000 hangs in balance because if things do not improve, they too will be asked to leave by January-end.