Slowdown causes closure of 50 ancillary units in Jharkhand

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Jamshedpur (Jharkhand ), Nov 6 (UNI) The global financial slowdown and output slump widewide have factored into the closure of around 50 small ancillary units in just a fortnight at Adityanagar Industrial area near here, the hub of Tata group of companies.

Tata Motors, the largest automobile manufacturer of India, had already stopped production in its heavy vehicle plant here for three days begining today, owing to heavy output downturn.

Adityapur Small Industries Association President S N Thakur told UNI that altogether 50 ancilliary units, which directly or indectly supplied various parts to Tata Motors and other firms, were completely closed, while several others were on the verge of closure.

'' Around 900 ancillary units have cut their workforce by up to 40 per cent due to demand downturn. Most of them are now operating in only one shift rather than three a day. The situation is very bleak. The industrialists are facing yet another problem as they have to pay the transporters without actually taking any services from them, '' Mr Thakur said.

He estimated that losses worth hundreds of crores of rupees were incurred by the firms due to slowdown.

Tata Motors' heavy vehicle plant's production was slashed from 500 units per day in March to 150 per day recently, sources said adding the auto giant had already disengaged almost all of its 3,000 non-permanent workers due to production slump.

According to sources, it gave ''no work notice'' to half of them on October 20, 23 and November 3, while the rest were ousted during the general monsoon slump and not taken back.

The plant had brought down the number of production shifts to one, which was erstwhile three.


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