Dunlop’s Ruia seeks Rs.1 bn loanNovember 24th, 2008 - 10:50 pm ICT by IANS
Kolkata, Nov 24 (IANS) Dunlop India Ltd chairman Pawan Kumar Ruia Monday said he has asked the government to grant Dunlop a loan of Rs.1 billion.”We have asked for a loan of Rs.100 crore (Rs.1 billion) from West Bengal Industrial Development Corporation (WBIDC),” he told reporters at the state’s secretariat Writers’ Buildings after a meeting with West Bengal Labour and Power Minister Mrinal Banerjee.
He reassured that there would be no job cut in the company and reiterated that it would commence production again.
“I have apprised the minister about the present situation in Dunlop. The company is still receiving orders. The problem, which we have faced is shortage of working capital,” Ruia said.
“Dunlop closure is not a permanent one, it is a temporary shutdown,” Ruia added.
“We have received the application from Dunlop a few days back and it is with the concerned department, which is examining it,” Subrata Gupta, managing director of WBIDC, told IANS.
A week after suspending production at the factory in Hooghly district neighbouring Kolkata, Ruia Sunday said he was negotiating with the banks for a working capital loan of Rs.700 million in the first phase.
“Our total shortfall is Rs.2 billion. But we are expecting to tie up soon with a bank for an initial amount of Rs.700 million,” Ruia said at a media conference here Sunday.
Earlier, he asked for sales tax exemption from the West Bengal government and an agreement with the workers for increasing productivity before resuming operations at the Sahaganj factory.
The union leaders of the Sahagunj factory are sitting for a bipartite meeting with the labour minister Tuesday.
The Ruia Group ventured into tyre industries in 2005 with the acquisition of Dunlop India Ltd.
- Dunlop suspends work at Bengal tyre factory - Oct 08, 2011
- Dunlop to withdraw lay-off notice at Bengal plant - Apr 05, 2011
- Relief undertaking to Dunlop only after it reopens: Minister - Oct 20, 2011
- Ruia asked to submit Dunlop revival plan - Aug 01, 2011
- Dunlop drops lay-off notice, asks workers to join duty - Apr 06, 2011
- Dunlop board to discuss shut Bengal factory Oct 21 - Oct 13, 2011
- Dunlop shutdown continues as talks fail - Oct 10, 2011
- Conditional offer to open Sahagunj unit in phases - Oct 21, 2011
- Dunlop board allots shares to convert loan into equity - Apr 29, 2012
- Ensure law and order for Dunlop plant to function: Ruia - Sep 10, 2011
- Work suspended at Dunlop factory in Bengal - Apr 04, 2011
- Will try to get Sahagunj reopened, Bengal assures Dunlop workers - Oct 17, 2011
- Dunlop to reopen West Bengal plant from March 6 - Mar 03, 2009
- Dunlop's West Bengal unit reopens, production in one month (Lead) - Mar 06, 2009
- Dunlop has no immediate plan to reopen Bengal plant - Jul 18, 2012