Trade unions and officials held a tripartite meeting here and discussed ways to rehabilitate the country's iconic Ambassador Car workers, besides discussing the back wage payment issue of former employees.
The meeting was held between the Ambassador Car company management, trade unions and government officials.
"Today, we had a long discussion. It was tripartite meeting of management, trade union and government officials were present. We discussed the issue of back wage payment of the workers that is due for about six months; we also discussed the possibility of reopening the company as soon as possible," said Amal Roy Choudhary, Secretary Labour Department.
Earlier, the maker of the iconic Ambassador car- long hailed as the ultimate choice of the country's officialdom -halted its production on May 24, citing weak demand and a lack of funds, casting a shadow on the future of a vehicle, the appearance of which has essentially remained unchanged for more than five decades.
Approximately 2, 600 workers had been left hapless much before the factory was shut.
The company sold about 2,200 Ambassadors in fiscal 2013-14, a tiny share of the 1.8 million passenger cars sold during the year in India, according to industry data.
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The statement also said that the company had lost close to 94 crore rupees (over US$ 16 million) till April 2014.
Despite its dwindling sales, the distinctive car with its bulbous design and roomy interior has many admirers and was last year named the world's best taxi by the BBC's popular Top Gear television show.
Meanwhile, the President of the Sangrami Sangharsh Samiti (A Trade Union), A.I.Khan, termed the meeting as a futile exercise, and said no solution has been worked out for the workers.
"This matter has been avoided so far and nothing fruitful came out in the meeting. They will chuck a revival plan later but right now they for us. Earlier on 12th of this month no solution came in the meeting this time also it
was a futile exercise and they have said that they will let us know after 30th of this month about payment issue.
As of now there is no revival plan," said Khan.
The Hind Motor plant at Uttarpara was set up in 1942. It saw its highest production in the mid-1980s after which production dropped in the 2000s. Approximately 314 acres of the factory land was reportedly sold off to fund
plant revival.
In Kolkata, there were some 33,000 Ambassador taxis at the end of 2013. Many of them have lived off these taxis pretty much all their lives.
Struggling with falling sales, Hindustan Motors accumulated losses exceeding its net worth at the end of its financial year ended Sept. 30, 2013, and the company has been looking for investors.
The Ambassador has remained the choice of a dwindling share of bureaucrats, politicians and top defence personnel, usually in white with a red beacon on top and a chauffeur at the wheel. It is still in use as a taxi in some Indian cities.
Modelled after the British Morris Oxford, the Ambassador was the first car to be made in India and was once a status symbol, but began losing its dominance in the mid-1980s when Maruti Suzuki introduced its low-priced 800 hatchback. A new Ambassador in Kolkata costs around 515,000 rupees ($8,800).
It lost further cachet and market share when global automakers began setting up shop in India in the mid-1990s, offering models with contemporary designs and technology.