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Tata Motors Begins Clearing Vendor Dues

Posted on March 21st 2009

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Tata Begins Clearing Vendor DuesWith a launch of Nano car just days away, Tata motors has started to make extended overdue payments to their vendors. Tata motors has joined with the SIDBI (Small Indstrl Development Bank of India) to assist them clear up their dues with the component manufacturers.

Under this tie up, the SIDBI will manage these payments to suppliers and Tatas will return it to bank after 3 to 4 months.

According to Auto Industry Analysts, a Tata motor doesn’t have any alternative but to pay its vendors if it’s to keep their backing. All vendors’ assistance will be very essential to the company in coming days to raise its production.

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