Business Daily from THE HINDU group of publications
Friday, Oct 16, 2009
ePaper | Mobile/PDA Version | Audio | Blogs

News
Features
Stocks
Cross Currency
Shipping
Archives
Google

Group Sites

Corporate - Outlook
States - Tamil Nadu
Dunlop may reopen Ambattur unit next week

Sahagunj factory still awaits power supply from West Bengal utility.



Mr P.K. Ruia

Our Bureau

Kolkata, Oct. 15 Dunlop India plans to resume production at the Ambattur factory in Chennai next week. The fate of the Sahagunj facility, however, is still uncertain as the West Bengal State Electricity Distribution Company Ltd (WBSEDCL) is yet to resume power supply to the unit.

“The power connection to the Ambattur unit resumed on October 14 and we plan to resume production tentatively on October 19,” the Dunlop India Chairman, Mr P. K. Ruia, told Business Line. The company entered into a fresh wage agreement with the 700 employees of the facility almost a month ago.

Ambattur produces cross-ply truck/bus tyres. Production was suspended in the facility for more than a year.

Meanwhile, the long-pending proposal for resuming operations at Sahagunj is in limbo. While the company faults the WBSEDCL for not resuming supplies, the power supplier blames Dunlop for not complying with procedures.

A WBSEDCL official said that according to the prescribed guidelines of the State Electricity Regulatory Authority, power distributors are entitled to accept “confirmed, revolving, irrevocable and non-recourse letter of credit (LC)” for payment of electricity charges. “On the contrary, Dunlop India has offered a conditional LC which may be revoked. We cannot accept the same,” the official said.

Power supply has been a long pending dispute between WBSEDCL and Dunlop. Dunlop surrendered the power connection during its suspension of work between November 2008 and February 2009. In March 2009, the company withdrew the suspension of work and inducted 250 workers out of a total 1,190 for maintenance. It was proposed that production be resumed as soon power supply was resumed.

According to the company, to ensure power supply, Dunlop entered into a pact with WBSEDCL in September to pay dues worth Rs 13.40 crore accrued during the seven years of closure of the Sahagunj facility before being taken over by the Ruia Group at end 2005.

The company previously contested the claim in the court. However, in line with the pact the company finally agreed to pay the amount in instalments over nine years.

More Stories on : Outlook | Tyres | Tamil Nadu

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page



Stories in this Section
Govt beefs up legal team for RIL-RNRL gas row


BPCL, Kingfisher move to end jet fuel dues row amicably
Hindalco to raise Rs 2,900 cr
Will pay legitimate dues: RCom
`Credit worthiness improving'
Trivitron looking to buy cos in Pune
Stable revenue is big plus for acquirers
Nuclear Fuel Complex plans Rs 1,000-cr greenfield facility
LMJ jewellery export unit
Sterlite to invest Rs 2,300 cr in Tuticorin
Vadodara Municipal Corporation, GAIL join hands for gas supply
Dunlop may reopen Ambattur unit next week
Falcon Tyres plans to raise Rs 100 cr thru PE route
Govt allows Coal India to hike prices by 11%
Fiat India exports 25,000 engines thanks to scrappage scheme
Mukesh Ambani takes a pay cut




The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | The Hindu ePaper | Business Line | Business Line ePaper | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2009, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line