Home > News > More News

Over 900 Tata Motors ancillaries face 'forced' shut down

Posted on Dec 06, 08:04PM | UNI

More than 900 ancillary units of Tata Motors and some other Tata group companies situated in Adityapur town of Saraikela-Kharsawan district in Jharkhand were facing forced closure and incurring a loss of around Rs 200 crore per day following the strike of Jharkhand State Electricity Board employees in protest against the handing over of distribution work to private companies, official sources said today.

President of Adityapur Small Industries Association (ASIA), a forum of the ancillary units most of which supply auto parts to Tata Motors commercial vehicle plant here, Mr R K Sinha said, 'We are facing blackout like situation since last evening. Around 85 per cent of the smaller units which purchase power from the board have completely stopped operation due to unavailability of power while the remaining 15 per cent bigger units which get electricity from JUSCO have also gone for a compulsive shut down." "Even if they continue production Tata Motors won't buy their items as in the absence of the small parts a truck can not roll out of the plant. Our bigger concern now is that if this situation persists Tata Motors, which was already facing problems due to the ongoing slowdown, might opt for purchasing components from its ancillaries at Pune and Lucknow. This might devastate us completely, "he added.

Mr Sinha said he had talked to the JSEB chairman Mr S N Verma today and the latter had assured of some positive outcome soon.

The association president, however, said he was now also concerned for the security scenario in the industrial township.

The industrial units in Adityapur and adjoining areas manufacture components for trucks, trippers, trailers and other multi-axle heavy vehicles that is produced in the Tata Motors plant here.