Tneb Cuts Power Supply To Binny Mills

The beleaguered Buckingham and Carnatic (B&C) Mills remained inoperative for the 12th day yesterday, with the unit's electricity connection, snapped for default in payments to the Tamil Nadu Electricity Board (not yet resumed despite an assurance from the state government.

Binny Ltd, which runs the unit, and the state labour minister A Rehman Khan had reached an understanding on May 26 last to resume power supply to the mills for operations till June-end.

Meanwhile, the mill workers, supported by representatives from several city unions, held a nine-hour long dharna to press for takeover of the cash-starved unit by the government.

 

Under the understanding, B &C, which owes about Rs one crore to Tamil Nadu Electricity Board (TNEB) on account of power supply, would be drawing power against the supply made by the 22mw windmill owned by the Binny group, to the state grid.

Workers, on their part, had agreed to wait for their April wages till June 9, on the condition that the management makes available to them household provisions on salary credit, union sources said.

The Supreme Court would decide on June 9, whether or not to allow the release of locked-up deposits of the company in the Indian Bank, for payment of wages to the workers.

The bank had filed a special leave petition in the apex court, which passed an interim stay against release of Rs 5 crore that accrued to the company as insurance compensation against damage to the unit's machinery during last year's floods.