Hindustan Motors receives formal Intimation from West Bengal Government to expand & diversify it’s Uttarpara plant

Hindustan Motors Ltd has announced that the Company has received a formal intimation from the Government of West Bengal for it´s "Revival & Renewal Proposal" that would bring its Automotive Industrial Complex at Uttarpara back to profitability and financial health. The proposal envisages the following;

- Diversifying & expanding into the auto component sector by developing a modern & large sized automotive forgings & Automotive Castings & Automotive Stampings business by cost effectively leveraging existing facilities and infrastructure.

- Sustaining the existing vehicle business by expanding range and upgrading technology;

- Transformation of work practices in line with best in class in the auto industry - to achieve competitiveness in quality, cost & delivery.

The Company expects to incur about Rs 85 crores in order to modernize and grow the operations at Uttarpara. This proposed investment is in line with what was submitted in its application to the WB Government. The Company had applied to the State Government, seeking permission for alternate use of 314 acres of surplus land at Uttarpara.

West Bengal Govt. had indicated last month that the Company´s application had been approved under the West Bengal Industrial Renewal Scheme 2001 and as per West Bengal Land Reforms Act 1955. The company was awaiting formal communication which it has received now.

Commenting on the development, Mr Ravi Santhanam, Managing Director, of the Company said, "We are thankful to the Government for considering our proposal favorably. This approval should pave the way for making Uttarpara unit Into a vibrant industrial enterprise".

The company´s application envisages development of 314 acres of land, over a 4-5 year period, into a World Class Integrated IT & ITES township and Auto Ancillary Park.

IT, ITES and Auto Ancillary are three of the fastest growing sectors and such a development will maximize socio-economic benefits to Uttarpara and the neighboring belts.

Source : Equity Bulls

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