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

A+| A| A-

By Judicial Sanctions and Commanding

By Judicial Sanctions and Commanding Positions Hansavivek PREMIER AUTOMOBILES is still awaiting government approval for expansion of car production to 18,000/ 20,000 units per annum, although more than two years have elapsed since it applied for the increase. The directors moreover, complain that, although prices of cars are subject to half-yearly review in accordance with the principles laid down in the Supreme Court judgment, the company is tunable to obtain price increase corresponding to various cost increases. The company has also submitted plans for increasing production of commercial vehicles from 6,000 to 15,000 units per annum In two stages. As the present source of supply for diesel engines cannot be relied upon, it is intended to establish own inanu-, factoring plant. Negotiations for this ate in progress, with Perkins of London, Last year, the company could obtain only 1,819 numbers of engines from the Madras-based Simpson, against its requirement of 4,000 numbers, owing partly to a labour agitation at the manufacturer's factory and partly to a severe power-cut in Tamil Nadu, The company also could not obtain its requirements of brake equipments for cars on account of labour unrest at Automobile Products of India, Workmen at all plants bad to be laid off for three weeks. Loss of production was estimated by the company at Rs 10 crores. The company obtained a licence to import 1,000 numbers of diesel engines, but these could not be shipped by suppliers in time. The benefit of increased production would be reflected in the current year.

To read the full text Login

Get instant access

New 3 Month Subscription
to Digital Archives at

₹826for India

$50for overseas users

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top