Dunlop India Chairman Issues Consolatory Media Brief

PK Ruia, the chairman of Dunlop India has told national media sources that the situation at the company’s Sahagunj plant, where work remains under suspension, is “under control.” The factory has been closed since Tuesday 18 November, when staff members were told to go home with an allowance on 2,000 rupees a month. The company now states that talks with banks to negotiate the necessary working capital to reopen are “at an advanced stage”, and that the factory expects to reopen in between 15 and 90 days’ time.

According to Ruia, the company is yet to receive incentives offered by West Bengal authorities, which has been partially responsible for the factory’s insufficient funds: “The state government’s deferment of sales tax is yet to be allowed. We had also asked for waiver of past dues on sales tax — this bit is also due,” he stated.

“Production has been stopped because of non-availability of working capital, the sales tax waiver, deferments of previous sales tax dues and revised production norms for workers. However, these issues are not interdependent and we hope to restart production as soon the money is disbursed by banks,” continued Ruia.