Tata Motors announces VRS for India workmen

Responding to an increasingly competitive business environment, Tata Motors, the country's largest automotive company by revenue, has announced a voluntary retirement scheme (VRS).

The company, however, did not divulge the number of people it intends to bring under the scheme.

''In keeping with Tata Motors' practices, a generous benefits package will be offered to employees who opt for the scheme, including a monthly payout (Basic+DA) that begins at the date of separation till the employee turns 60 years of age. Thus ensuring an assured monthly income as opposed to just a one-time payment of a single amount,'' the company said.

The company will also provide a medical insurance cover for a period of 10 years post separation. These are in addition to normal retirment benefits such as PF, gratuity, superannuation (if applicable), encashment of unavailed leaves and LTA, it said.

Tata Motors was planning to launch two new products under its passenger vehicle business every year till 2020. It would also introduce several new products and variants for its commercial vehicles business.

The truck and car manufacturer employs more than 30,000 people in India.

With consolidated revenues of Rs2,32,834 crore in 2013-14, Tata Motors is India's largest automobile company.

For the third quarter ended 31 December, Tata Motors had posted a 25.5 per cent fall in consolidated net profit at Rs3,581 crore, impacted by one-time provisions.

The company had posted a net profit of Rs4,805 crore during the corresponding quarter a year ago.

The losses were due to a one-time provisioning of about Rs300 crore for Singur plant, and another Rs300 crore for certain exceptional items including inventory write-offs, company executives had said at the time of the results.