India's oldest carmaker Hindustan Motors, which declared suspension of work at its Uttarpara plant on May 24, on Monday made an interim payment to workers.
The company paid Rs 7,000 each to around 2,500 workers with the total outgo touching Rs 1.8 crore, sources in Hindustan Motors told PTI.
The money was credited to the bank accounts of workers, they said.
The sources said that the company had to arrange funds since there was no cash earnings as sale of Ambassador cars had dwindled resulting in zero production of the iconic brand.
The West Bengal government in a bipartite meeting held last Thursday asked the company management to pay workers as they were facing a salary backlog of nearly six months.
The government was scheduled to hold another bipartite meeting with the management tomorrow to ascertain the future of the company.
The management was forced to declare suspension of work at the plant because of severe lack of demand and strained cash flow.
The company was also looking for a strategic investor for the revival of the Uttarpara plant.
Promoter C K Birla had stepped down from the company's board as chairman, followed by the resignation of CEO and MD Uttam Bose.
Moloy Chowdhury was appointed as acting CEO of Hindustan Motors.
