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| Dunlop to decide on Sahagunj plant closure in 15 days, says Ruia |
| BS Reporter / Kolkata Jul 26, 2009, 00:40 IST |
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Dunlop India will decide whether to resume operations at its Sahagunj factory in West Bengal within the next 15 days, according to Chairman Pawan Ruia.
 Speaking on the sidelines of the 82nd annual general meeting of the company, Ruia said, “Given the present situation, we will not be able to bear the expenses for long. We will take a final decision within the next 15 days.”
At present, of the 1,170-odd workers at the factory, 256 are reworking the infrastructure to resume operations Ruia said every month, the company was spending close to Rs 3 crore on plants where there was no production. Of this, Rs 60-70 lakh in on the Sahagunj plant. Production at the Sahagunj unit is stalled because of lack of electricity.
“The factory had electricity dues worth Rs 15 crore, which according to me is not the liability of Dunlop India. The electricity department issued bills despite the fact that the plant was shut. The company has paid Rs 2.5 crore. Right now, the company does not have enough cash to pay the dues. So, we have asked the electricity department for a moratorium of around two years so that we can stabilise production at the plant and pay the remaining dues. The matter is pending with the electricity department,” said Ruia.
The Chinsurah court had ordered completion of the hearing before July 15. The judgment is expected in a day or two. “We are waiting for the judgement. If it’s in our favour, it will be good. Otherwise, we will have to appeal again,” he added. The company plans to stabilise production at the Sahagunj factory at 40 tonnes per day to start with, which may require 5-6 Mw. Dunlop is also looking at setting up a 25 Mw power plant in the Sahagunj factory for captive use. It is, however, yet to make an official proposal to the state power authority for this.
Ambattur plant to resume soon
Operations at the Ambattur facility are to resume soon, says Ruia. The plant was shut over a dispute involving around eight acres of land.
“The land issue has been resolved. Negotiations are in final stages and we are very close to signing an agreement with the workers. We expect the plant to resume operations soon once the agreement is signed,” said Ruia. However, he refused to give any dates.
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