Premium
This is an archive article published on December 13, 2008

Govt’s no to loan plea casts a shadow on Dunlop

With the state government turning down the plea of Dunlop chairman Pawan Ruia for the Rs 100 crore soft loan to run the Sahagunge unit, there is little hope of an early reopening of the plant.

.

With the state government turning down the plea of Dunlop chairman Pawan Ruia for the Rs 100 crore soft loan to run the Sahagunge unit, there is little hope of an early reopening of the plant. The factory is closed since November 30.

“The state government cannot help Dunlop as it is not a sick company,” Labour Minister Mrinal Banerjee said on Friday.

After a meeting with Ruia on Wednesday, Trinamool Congress chief Mamata Banerjee had demanded that the government should provide loan and VAT concession to the company for reopening the unit.

Story continues below this ad

Banerjee had visited the Sahagunge factory last week and said since the state government had given so many concessions to the Tatas, it should do the same for others.

“The Leader of Opposition in the Assembly, Partha Chatterjee, will take up the matter with Governor Gopalkrishna Gandhi and the labour minister,” she had said.

The labour minister, however, said the workers were apprehensive that Ruia would sell the factory land. “If he (Ruia) now sells the land with the support of a political party, we don’t know what will happen,” he said.

Ruia has alleged that the company did not get the incentive package the state government had promised, sources said.

Story continues below this ad

Dunlop India had announced suspension of work at the Sahagunge unit on November 17 pleading a fund crunch and declared a total shutdown on November 30, affecting 1,171workers.

Latest Comment
Post Comment
Read Comments
Advertisement
Advertisement
Advertisement
Advertisement