Dunlop may shut West Bengal unit again

July 25th, 2009 - 7:18 pm ICT by IANS ( Leave a comment )

Kolkata, July 25 (IANS) Tyre maker Dunlop India may suspend operations at its Sahaganj factory in West Bengal if electricity connection is not restored within 15 days, a top official said here Saturday.
“Electricity problem is holding back production. Decision has to be taken in next 15 days,” Dunlop chairman Pawan Kumar Ruia told reporters after the annual general meeting of the company.

West Bengal State Electricity Development Co has disconnected power connection of Dunlop unit as there is an outstanding bill of Rs.15.5 crore in the company’s name for the period when work remained suspended.

The company suspended work in the Sahaganj unit in Hooghly district from November last year citing the reason of economic meltdown.

It re-opened March 6, but could not resume production as there was no power connection.

“We have already paid Rs.2.5 crore, another Rs.13 crore is outstanding,” Ruia said.

At present, the company is doing its maintenance work in the factory with the help of generators. It has re-inducted 250 workers out of 1,100 after re-opening.

Earlier the chairman had said the company would resume work within seven days if power supply was restored.

Ruia said the company was also planning to set up a 25 MW captive power plant in the Sahaganj premises at an investment of Rs.125 crore.

“Dunlop requires 5-6 MW of power, rest we will sell,” he added.

The group ventured into tyre business in 2005 by acquiring Dunlop India from Manohar Rajaram Chhabria’s family.

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