Mamata throws her weight behind Ruia

“I told Ruia to open the factory immediately. He will talk to the workers’ representatives to formulate the modalities for reopening. We want the government gives VAT exemption to Dunlop and provide soft loan as sought by the company,” the Trinamool leader said.

After declaring the suspension of work at the unit on November 30, Ruia had asked for Rs 100 crore loan from the West Bengal Industrial Development Corporation (WBDIC). But the state government has not responded to it yet.

“Why should only the Tatas get everything free? The state government should announce a package for sick industries and those affected by the recession in line with the Centre’s package,” Banerjee said.

A visibly happy Ruia told the reporters: “We explained Banerjee that we are hit by the global meltdown and facing constraints in running operations. We told her that we did not intend to close down the factory and the suspension of work is a temporary affair.”

Immediately after Ruia had declared suspension of work, Banerjee led her party to begin picketing in front of the factory gate. “Either Ruia should start operations immediately or sell the factory equipment to clear dues of the workers,” she had said.

“Since we have taken over Dunlop in 2005, we have been asking the state government for a ten years VAT exemption, which a new company generally get. Mamata Banerjee feels that our demand is justified,” an official of Dunlop said.

Dunlop officials clarified that they were not trying to put political pressure on the CPM government but were hoping that the state provided Rs 100 crore loan required as working capital for the company.

Reacting to Ruia’s meeting with Mamata Banerjee, CPM state secretary Biman Bose said only the state government can decide which company would be provided special facilities or subsidies to set up industries. “This should be finalised only by experts and not by political leaders,” he said.