Indian Bank Asked To Issue Loan For Binny

The Tamil Nadu government has asked the Indian Bank to advance a loan to Binny mills against a second mortgage of its property.

At the tri-partite meeting called yesterday by the state labour minister to settle the impasse, the bank was requested to advance the money in public interest.

The money will not only provide working capital but will also help pay workers' wages for April.

According to labour sources, non-availability of raw materials is the main impediment to the mills going into full production.

With the little money made available to us we have managed to clean up and restore the machinery to working condition. It is now for the management to pump in the Rs 6.5 crore promised earlier to revive the mill, a source told Business Standard.

 

Pitching in with the labour union, the minister at the meeting requested the bank to advance a loan despite the status quo order from the Supreme Court last week.

This order pertains only to the Rs 5 crore insurance money, the minister is reported to have said. The state government has also come forward to provide some kind of a guarantee to the bank with regard to production and hence the ability to repay any money it may advance for re-opening the mill.