There were over one lakh bookings for the 309 of which around 90,000 have been cancelled. Sources say that the company has already settled a bulk of the dues and the balance represents around 20,000 bookings. The exercise has been a tough one for the top management during the last six months since the time Automobiles Peugeot decided to withdraw from its Indian operations.

Most of the dues to dealers and vendors have already been settled through trade-offs in Peugeot 309 cars. All the existing stocks of the 309 GLD have been sold and in an effort to infuse funds in the venture, the company even arranged to sell used cars of expatriates.

Sources close to PAL-Peugeot say that the need of the hour is infusion of some funds to settlethe 309 booking refunds. "Even Rs 20 crore would be sufficient and this is something which only Automobiles Peugeot can cater to," they add. There has, however, been no news coming from the French carmaker.

The fact that the plant has been operational despite trying circumstances has been attributed to the efforts of its managing director, JM Vakil.

Officers and workers say that closure of the plant would have taken place much earlier, otherwise. Even today, they add, every endeavour is being made to muster funds that can go towards payment of salaries and wages.

The 118 NE and its diesel counterpart, 1.38D, are still in demand and production of these vehicles continues, though in a small way, at the Kalyan plant. In fact, there was a momentary shot in the arm when around 40 CKD (completely knocked down) kits of the 309 GLD (diesel) were released from the warehouses and assembled.

There are over 300 kits of the 309 still lying at the warehouse but due to the tight financial situation at PAL-Peugeot,these stocks are yet to be cleared. The batch of 40 kits was released thanks to an inflow of revenue coming from painting the bodies of the Fiat Uno coupled with sale proceeds of the 118NE and 1.38D.

"The going is still tough but the management is doing its best to revive production of the 309 GLD. This way, the workers will be kept occupied and the factory will at least pull on," sources said. According to them, if some more money would come in during the next few weeks, additional kits of the 309 GLD would be released from the warehouse. "Hopefully, the entire stock of the 300-and-odd CKD kits can be assembled at the plant in the months to come."

Though the total outstandings of PAL-Peugeot amount to over Rs 700 crore, sources say the priority area is some funds for settling the refunds on bookings. The company, they add, wants to clean its slate as soon as possible but is finding it increasingly difficult without any help coming from its French partner.