Sharing in Automobile Boom

Sharing in Automobile Boom Hansavivek PREMIER AUTOMOBILES is making an application to the Central government to enhance its industrial licence from 18,000 to 30,000 cars per annum together with permission for automatic growth each year, which has been so far denied to car manufacturers. Meanwhile, work on the new model car is in progress. Dies for the "124" body have already been shipped and are expected to arrive very soon. Arrangements are being made to bring technical personnel from FIAT to assist the company in finalising various technical details. Loan agreements from financial institutions have been concluded and order for machinery and equipment worth Rs 15 crore have been finanlised. According to the Chairman, Vinod L Doshi, the new model, besides having a more spacious body, will have several improved features such as disc brakes with dual circuit, diaphragm clutch, two-speed wiper, steering lock, etc, The company will continue to improve features and performance of the car further. Phase I of the modernisation and renovation programme has been completed to the extent of 80 per cent. Delayed deliveries of equipment from machinery manufacturers slowed down the progress of the project. It is expected to be completed by middle of the current financial year. The company has obtained disbursement of Rs 5.55 crore towards soft loans of Rs 6.50 crore sanctioned for modernisation and renovation programme Phase I. A consortium of financial institutions has sanctioned soft loans amounting to Rs 13.15 crore towards the new model car project as well as modernisation of car assembly plant. During 1981-82, the company also received sanction from a consortium of banks for term loans of Rs 3.20 crore.