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Sushanta Patronobish

The entrance to Tata Motors in Jamshedpur (file photo). —

Our Bureau

Mumbai, Jan. 10 Tata Motors has, in a surprising development, cancelled its plan to go for another round of block closure of its Jamshedpur plant for six days starting January 12. This unit that makes heavy commercial vehicles, a segment that has been badly hit in the current economic slowdown. “There was a plan to go for a block closure from January 12 to 17. It has been cancelled due to a change in the production schedule. At present, there is no plan to go in for plant closure anytime later,” said a Tata Motors spokesperson.

A section of ancillary suppliers was surprised and told Business Line that they had not been intimated of this change. “This is news to me. Tata Motors, in any case, has a stock of components at the plant and some of us suppliers also have our godowns in Jamshedpur. The company can procure these parts anytime it wishes to and can always change work schedules.”

As sources say, it would be premature to see this as any signal of revival of the commercial vehicle industry. Suppliers, in any case, have not received any fresh orders though they added that “some news could come through on Monday”.

The Centre has been doing its bit for the industry with the most recent initiative being the fiscal stimulus but this may not be enough. Financing of vehicles continues to be a bottleneck coupled with the fact that related sectors such as construction and mining are virtually languishing.

Tata Motors had shut down its commercial vehicle plants in Jamshedpur, Pune and Lucknow for 10-15 days in November and December due to the huge drop in sales. December saw sales fall 51 per cent to 14,056 units from 28,661 units in the same period last year.

More Stories on : HCV/LCV/Tractors | Announcements | Tata Motors Ltd | Economy

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