Tata resumes production in its heavy vehicle plant

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Jamshedpur, Nov 10: Automobile giant Tata Motors on Monday, Nov 10 resumed production in its heavy vehicle plant here after five days of closure due to heavy decline in demand owing to the ongoing economic downturn the world over.

Company spokesperson Captain P J Singh said that production in the plant resumed with some departments doing two and some one shift. The company announced three day block closure (November 6 , 7 and 8) in addition to two days leave (Adjusted leave in lieu of Chhat festival on November 5 and general leave on November 9) due to heavily decreased demand, from 500 units per day in March to around 150 units per day recently, and financial slowdown.

The dismal show of this auto giant has caused complete closure of around 50 small ancilliary units situated in nearby Adityapur Industrial area in a time span of just around a fortnight.

Around 900 other such ancilliaries have also cut their workforce by upto 40 per cent due to demand downturn. Most of them are now operating in only one shift rather that the gereral practice of three a day.

''The situation is bleak and the industiralists are facing yet another problem in the form of paying the transporters without actually taking any services from them,'' Mr S N Thakur, president of Adityapur Small Industries association, said, adding the estimated business loss due to slowdown in the city was to the tune of hundreds of crores.

The auto giant has already disengaged almost all of its around 3,000 non-permanent workers due to production slump. It gave no work notice to half of them on October 20, 23 and November 3. Half of such workers were ousted during the general monsoon slump and were not take back. Recently the plant had brought down the number of production shifts to one day from normal three days.


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