Kolkata: C K Birla-owned Hindustan Motors Limited on Wednesday said the company, which stopped production in 2014, has paid off most of the liabilities other than a few employee liability and has been able to reduce accumulated losses, a company official said.
Director of HM Uttam Bose, who chaired the company’s AGM here, said the company is investing its resources in future technology, which is the electric vehicle (EV).
The company’s Uttarpara plant in West Bengal, which produced the iconic ‘Ambassador’ cars, stopped production in 2014 due to lack of demand for the product.
He told shareholders that both the financial and technology partners are completing their due diligence by next month after which technical evaluation and JV structure will be finalised.
Bose had said earlier that both the partners, HM and the European company, will invest Rs 600 crore as initial capital for the EV project. After cessation of production in 2014, the West Bengal government had allowed HM to sell 314 acres of land at the Uttarpara plant for alternative use.
The company sold the land parcel to a real estate developer. —PTI