ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Within Reach

Within Reach Hansavivek TATA ENGINEERING AND LOCOMOTIVE COMPANY has received a letter of intent' for manufacture of 9,000 medium and heavy vehicles per annum at Poona and 3,000 off-high- way vehicles at Jamshedpur, and for the setting up of an alloy iron foundry at Poona with an annual capacity of 10,000 tonnes. Among the conditions imposed by government are that (i) that additional production should be achieved not later than March 1978, (ii) the company must export vehicles and spare parts thereof to the extent of 20 per cent of the additional capacity, over and above its present level of exports, so that the value of total exports should reach a minimum of Rs 20 crores, subject to first meeting defence requirements, and (iii) the selling prices should be so regulated that the rate of gross profit should not exceed 11.85 per cent of the net sales during the period of expansion and one year thereafter. While these conditions are, by and large, acceptable to the company, it expects difficulties in meeting the export commitment and is therefore discussing this further with government, J R D Tata, chairman, points out that the export target can be achieved, provided conditions in India and abroad at the time are such that the company's efforts are not frustrated by factors beyond the management's control.

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