Hindustan Motors on Tuesday said it is offering a Voluntary Retirement Scheme (VRS) for all permanent workers in the "grade scale staff" and "technicians" for its Uttarpara factory in West Bengal.
In a filing with the Bombay Stock Exchange, the company said the VRS will be applicable for staff who will be on the roll of the company as on October 1.
The plant, reeling under severe cash stress, had suspended its operations last year.
The company had suffered a standalone loss of Rs.41.9 crore for the fiscal year ended March 31, 2015 and continues to remain under stress. During April-June this year, its net losses accounted to Rs.4.9 crore as against a loss of Rs.15.68 crore in the corresponding three months in 2014.
The Uttarpara plant, which started operations in 1948, used to produce the Ambassador cars (1,500 and 2,000 cc diesel, 1,800 cc petrol and CNG & LPG variants) in the passenger car segment and light commercial vehicle, HM Winner (2000 cc diesel and CNG).
The Uttarpara factory, located in the state's Hoogly district used to be the first and the only integrated automobile plant in India. Popularly known as Hind Motors, it also manufactured automotive and forged components.
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The setting up of the plant, which was followed by the establishment of the adjacent Hind Motor railway station by the government had a profound impact on the socio-economic milieu of Uttarpara.
The ambassador - once a symbol of status for the urban rich - began losing its prominence in the 1980s when Maruti-Suzuki launched its 800 cc car. Although it kept up with the struggle over falling sales while continuing to lose market share, the final blow came in from foreign car makers post liberalization of the economy.