Dunlop to go for phased suspension withdrawal at Sahagunj plant
22 Oct 2011
Famed takeover tycoon Pawan Ruia, it seems, is stuck with Dunlop. His remarks while announcing his decision of withdrawal of suspension of work notice at the company's Sahagunj plant in Hooghly, West Bengal carried an unmistakable sense of resignation.
''We may be burning cash, the present situation might look like a nightmare, but I am hopeful of a revival of the company in future. But if this restructuring effort fails, it might be the end of the road as far as efforts to revive the company are concerned,'' Ruia told journalists.
According to analysts, suspending work when the plant itself was not operational over the last 10 months was more of a legal step: Ruia had been paying salaries to the workers who had been sitting idle all this while and a ''suspension of work'' would allow him not to pay salaries.
Operations at the plant had been suspended on 8 October over alleged law and order issues.
He said, in case there was everyday theft one could not run a plant. He added the state government had assured the company that they were looking into the law and order situation at the plant.
The West Bengal State Electricity Board had cut power supply to the unit in August over pending dues and though he did not divulge how much the dues were, he said the company was in the process of making the payment.
