 "Uttam Bose")
“The two units are different in many ways. Naturally, the potential investors for both the Chennai (Tiruvallur) factory and Uttarpara factory would be different. We are open to equity participation in both and in talks for same,” Uttam Bose, managing director, HM said.
When asked about the identity of the potential investors, Bose said, “For Chennai, it is a foreign car-maker and for Uttarpara it is a financial investor.” However, he clarified the CK-Birla group would continue as the lead promoter. He was speaking on the sidelines of the company's official launch of its BS-IV compliant Ambassador Encore.
On Januray 2013, the board of the CK-Birla group company had decided to demerge and transfer its Chennai Car Plant (CCP) to its fully owned subsidiary organisation Hindustan Motor Finance Corporation Limited (HMFCL).
As per the plan, post demerger HM may get rechristed as Hindustan Motor Bengal, which would run the Uttarpara(West Bengal) and Pitampura(Madhya Pradesh). On the other, HMFCL would run the Chennai plant.
However, the plan hit a roadblock as it is being opposed by the West Bengal government, which is claiming a compensation of Rs 200 crore on grounds that the disputed sale of 314 acres of land at company's Uttarpara plant to Bangalore-based Shriram Properties for the development of an integrated IT township in 2007, was a loss to the state exchequer. The HM demerger is opposed by both the state government and Shiram Properties as they want to settle this matter first. The matter is under the review of Calcutta High court.
Incidentally, in a respite to HM , in a court-convened meeting, the company yesterday got shareholders' approval for the proposed demerger.
“Since the court has allowed us to go ahead to secure shareholders' approval, we are confident we will get the final approval soon. Hopefully, in two-three months, we will hopefully complete the demerger process,” Bose said.
He also reiterated that there were no irregularities on the part of HM in selling the land to Shriram Properties.
In 2006, HM got an approval from the Left Front government to sell the land. HM had informed of a Rs 85-crore projected revenue from the sale of excess land.
However, the government claims an internal audit of the state government as well as the state vigilance enquiry found that HM had sold the land to Bangalore-based Shriram Properties at a price of Rs 285 crore in 2007.
The state also believes, the money was not ploughed back to the company. However, the company had always denied the allegations saying the money went to 'deficit financing' of the Uttarapara plant.
