Proceeds from sale of Uttarpara, Pithampur land would not be less than Rs 162 cr: Hindustan Motors

By: |
March 25, 2021 3:45 AM

"At this time we are only seeking a part transfer of right in reference to Uttarpara land and a lease hold right transfer in reference to Pithampur."

India's oldest carmaker further said in reference to Uttarpara land, which is part of this query is outside the factory premises and there is no existence of any machinery/equipment. (Representative image)India's oldest carmaker further said in reference to Uttarpara land, which is part of this query is outside the factory premises and there is no existence of any machinery/equipment. (Representative image)

Hindustan Motors, erstwhile makers of iconic Ambassador car, has said proceeds from the proposed sale of land at its closed Uttarpara (West Bengal) and Pithampur (Madhya Pradesh) units would not be less than Rs 162 crore.

Addressing the shareholders, the CK Birla Group company has also clarified that the Uttarpara land, which is to be sold, is outside the factory premises and “there is no existence of any machinery/equipment”.

In a stock exchange filing on Wednesday, the company said in regard to the notice of postal ballot, dated February 25, 2021 relating to the approval for sale of land at Uttarpara and Pithampur, there have been further queries raised by some shareholders.

“The approval is pertaining to the specific area of land only i.e. not more than 150 acres of land at Uttarpara and not more than 35 acres of land at Pithampur and the consideration in relation to above mentioned land pieces shall not be less than `150 crore in case of Uttarpara and not less than `12 crore in case of Pithampur,” Hindustan Motors said in the stock exchange filing.

The company, giving additional clarifications, said the land at Uttarpara is industrial land and under restrictive sale with the permission of West Bengal government. Whereas, the Pithampur land is under lease from MPIDC.

“So sale on circle rate or applicability of circle rate is not even a probability,” it stated.

“At this time we are only seeking a part transfer of right in reference to Uttarpara land and a lease hold right transfer in reference to Pithampur.”

India’s oldest carmaker further said in reference to Uttarpara land, which is part of this query is outside the factory premises and there is no existence of any machinery/equipment.

“As regard to the Uttarpara land of the company, the present resolution is dealt with and restricted up to not exceeding 150 acres area of land which is to be sold.

In future, a new and fresh resolution would be required for seeking approval from shareholders, in case of any disposal of any piece of land at Uttarpara, for any mode of transaction like transfer, lease or sale etc,” the company added.

Mumbai-based Hiranandani Group is planning to set up an integrated logistics park and a hyperscale datacentre park at the Uttarpara land, investing around Rs 8,500 crore.

The group, which entered into a memorandum of understanding (MoU) with Hindustan Motors last month, has said its group companies GreenBase and Yotta would set up the integrated logistics park and hyperscale datacentre park, respectively.

Chennai-based Shriram Group in 2008-09 bought more than 300 acres at the Uttarpara factory for real estate and IT park.

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