Relief undertaking to Dunlop only after it reopens: Minister
October 20th, 2011 - 1:36 am ICT by IANSKolkata, Oct 19 (IANS) The West Bengal government Wednesday said it will approve a relief undertaking sought by tyre maker Dunlop India Limited (DIL) only after the management reopens its Sahaganj factory in Hooghly district and takes measures to run the plant.
Talks between tyre maker DIL, a Pawan Ruia-owned company, and the state government on reopening the factory failed to make any headway Oct 10, even as the government asked the company to immediately withdraw its suspension of work notice.
The company management put up suspension of work notice at the factory gate Oct 7 night, five months after a temporary shut-down in April. About 900 workers are employed at the unit.
The company has alleged anti-social activities and vandalism by a section of workers, exorbitant conversion cost, hefty increase in raw material prices without corresponding increase in tyre prices, continuous losses and cash crunch for its inability to run the factory.
It has demanded for benefit of relief undertaking from the state government.
The state cabinet Wednesday discussed the Dunlop fiasco, among other things.
“We have discussed whether benefit of relief undertaking to Dunlop can be given. They had applied for that. We will approve the subject when we will see that the doors of the factory are opening and the management has taken measures to run it,” state Industry Minister Partha Chatterjee told reporters after the cabinet meeting at the state Secretariat here.
Dunlop, which the Ruia Group acquired in 2006, has two plants - at Ambattur near Chennai, and Sahagunj. While the Ambattur plant is operational, there has been no production in Sahagunj plant for the last ten months.
- Dunlop board to discuss shut Bengal factory Oct 21 - Oct 13, 2011
- Conditional offer to open Sahagunj unit in phases - Oct 21, 2011
- Dunlop shutdown continues as talks fail - Oct 10, 2011
- Dunlop suspends work at Bengal tyre factory - Oct 08, 2011
- Ensure law and order for Dunlop plant to function: Ruia - Sep 10, 2011
- Will try to get Sahagunj reopened, Bengal assures Dunlop workers - Oct 17, 2011
- Ruia asked to submit Dunlop revival plan - Aug 01, 2011
- Dunlop to withdraw lay-off notice at Bengal plant - Apr 05, 2011
- Dunlop drops lay-off notice, asks workers to join duty - Apr 06, 2011
- 'Clarify timeframe on worker deployment at Sahaganj' - Apr 10, 2012
- Dunlop India suspends operations at Chennai plant - Feb 22, 2012
- Work suspended at Dunlop factory in Bengal - Apr 04, 2011
- Dunlop board allots shares to convert loan into equity - Apr 29, 2012
- Dunlop's West Bengal unit re-opens - Mar 06, 2009
- Dunlop's Bengal unit likely to resume production soon - Nov 09, 2009
Tags: cabinet meeting, cash crunch, company management, conversion cost, dunlop india, headway, india limited, industry minister, kolkata, oct 7, owned company, partha chatterjee, pawan, raw material prices, ruia group, state cabinet, state secretariat, tyre prices, vandalism, west bengal government