New Delhi, April 17: The proposal of the General Motors of the United States for equity participation in the Hindustan Motors, Calcutta, came under heavy fire in the Lok Sabha today.
Members irrespective of party affiliation spoke strongly against allowing the multi-national company to invest in the Indian company and said this would amount to raking the industrial policy in “reverse gear”. They demanded a discussion in the House on this issue before the government took a decision.
The Heavy Industry Minister, Mr. T.A. Pal assured the House that the matter would be “fully considered” by the government in the national interest before taking a decision. He said the government had only received the proposal which was under consideration. No decision had yet been taken on it.
Giving the details of the proposal, Mr. Pal said that the authorised capital of Hindustan Motors was Rs. 20 crores and the paid up capital was Rs. 13.62 crores of which 31 per cent was held by public financial institutions. The company had a licensed capacity to produce 15,000 trucks a year and much of it remained unutilised. At present the country has to depend on two companies — Teleo and Ashok Leyland — to meet the requirements of the public transport system. Besides allowing these two companies to raise their licensed capacity for the production of trucks, the government was also trying to see how the existing capacity was fully utilised.
The present proposal was that General Motors be allowed to invest Rs. 6.33 crores in the shape of machinery to improve the production techniques of trucks. One of the conditions was that components worth Rs. 7 crores would be exported if they were permitted participation for ten years.
