Financial Daily from THE HINDU group of publications
Friday, Dec 16, 2005
Financial Daily from THE HINDU group of publications Friday, Dec 16, 2005 |
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Corporate
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Sick Units Fresh revival plan for Dunlop to be submitted to BIFR on Jan 27 Our Bureau
Kolkata , Dec. 15 THE Ruia Group is planning to submit a fresh revival scheme for Dunlop India at the next Board for Industrial and Financial Reconstruction (BIFR) meeting on January 27. The new management has also initiated discussions with the trade unions for resolving issues related to employee dues and striking a new agreement at Sahagunj facility, this week. A similar exercise is expected to be repeated in Ambattur next week. Recruitment of a new management team is also under way. Sources said that at its last meeting with the BIFR on December 14, the company expressed its disagreement with the scheme drawn by the National Productivity Council (NPC). Accordingly it is decided that a new scheme will be placed to the operating agency, State Bank of India. The company's disagreements were primarily on account of the mode of raising finances, product line to be revived, margin money requirement for smooth running of the show and, employee dues. Contrary to the NPC proposal, the company insists on continuing with the aero tyre production after due modernisation. The NPC felt the existing aero-tyre production facility was not eligible to meet the requirements of modern defence and civil aviation aircraft and would require very large-scale investments. The Ruia Group would also recommend a lower level of margin money (working capital) compared to the NPC study. The latter pegged the margin money requirement at Rs 96 crore. As a preparatory work for preparing the new package, the company is now gearing up to settle labour-related issues first. While discussions are on with trade unions at Sahagunj for fresh agreement in West Bengal, efforts are on to meet the trade unions at Ambattur next week.
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