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R. Balaji

Hopes to resume Chennai operations today

Chennai , Jan. 7

Dunlop India Ltd, which plans to restart production at its Ambattur factory on Monday, has entered into an agreement with the State Trading Corporation that provides for raw material supplies among other things, according to company officials.

They, however, declined to elaborate on the arrangement, but said that raw material supplies is one of the aspects with STC procuring them for Dunlop.

Power Tariff

According to sources, this arrangement will take effect shortly but the company hopes to recommence production earlier at its Ambattur factory here — most likely on Monday. The company restarted production in August 2006 but shut down in two months after power supply was cut off due to non-payment of dues to the Tamil Nadu Electricity Board.

At that time Dunlop had said that the power tariff was unjustifiably high and took the issue to court. Power supply was resumed in December following an order by the Madras High Court. According to the sources, the company had also faced some issues relating to raw material supplies. But now the arrangement with STC addresses this problem. Meanwhile, the sources said that preparations are also on to settle the voluntary retirement scheme (VRS) dues to the workers.

VRS Scheme

Of the 1,122 workers, about 225 workers have opted for the VRS. The payment under the scheme would range from Rs 75,000 to Rs 1.25 lakh depending on the period of service. This would be in addition to the statutory dues. The company is hoping that an additional 100 workers would opt for the scheme. But in 2007 over 125 workers are expected to retire. This would mean that the management would reach its work strength target, they said.

Dunlop India under the Kolkata-based Ruias recommenced operations in 2006 after nearly a decade. But the production is yet to stabilise. Workers are hoping that the factory would recommence operations and their wages and dues paid ahead of the harvest festival, Pongal, next.

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