Dispute Over Power Bill Shuts Dunlop India Factory

A mere two months after Dunlop India’s Ambattur factory restarted production, a cut in power supply has halted work yet again. The plant had recently reopened after eight years when the Ruia Group acquired the ailing tyre company. The Tamil Nadu Electricity Board (TNEB) cut supply to the plant at the end of October as current consumption charges for September were unpaid, thus halting production at the factory.

Dunlop India is in talks with TNEB to try to reduce the size of the bill and reschedule payments, but TNEB says that, as soon as the bill is paid, power will be restored. The company also owes TNEB reconnection charges since power had been disconnected at the plant for over five years. This sum is being paid in ten monthly instalments.

Dunlop India’s Vice President for Communications, Mr. D. Nandi, said that the stoppage is “just a hiccup… teething troubles that will soon be overcome.” However, A. Sivakumar, joint secretary of the Dunlop Factory Employees Union said that in a meeting held with the local management on Tuesday evening, the union was told that it will take four more weeks to restart production.