Hindustan Motors, erstwhile makers of iconic Ambassador car, on Friday said it is planning to sell scrap and obsolete equipment lying at its Uttarpara plant in West Bengal.
In a stock exchange filing, the company said it executed an agreement for sale with Vanijya Private Limited on October 6.
The beleaguered company, India’s first ever car maker, was planning to utilise its land at Uttarpara for a project to make electric vehicles.
However, in May this year, the company said its proposed project for making EVs was stalled due to a notice from the West Bengal government over resumption of its land at Uttarpara.
The company had signed a memorandum of understanding (MoU) and had been in the advanced stages of discussion for a joint venture with an European auto company for the manufacturing of electric vehicles.
The company then said it had alternate plans to facilitate and generate additional revenue and realize adequate funds required after the resumption issue was resolved.
The company filed an application before the West Bengal Land Reform and Tenancy Tribunal, seeking relief against the state government order for resumption of its land.
The crisis-ridden automaker had stopped producing iconic Ambassador cars in 2014 as sales had dwindled. The management had declared “Suspension of work” at its Uttarpara plant with effect from May 24, 2014. The brand was eventually sold to French automaker Peugeot.
During FY23, the company’s revenue/other income was Rs 3.79 crore compared to Rs 14.58 crores in FY22.
