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Mr P.K. Ruia

Our Bureau

Kolkata, Sept. 3 Dunlop India Ltd on Thursday entered into an agreement with West Bengal State Electricity Distribution Company Ltd (WBSEDCL) to clear power dues worth Rs 13.40 crore over the next nine years.

According to the agreement, Dunlop will pay at the rate of Rs 5 lakh a month in the first two years to adjust the past dues over and above the current energy bill. The monthly payments would increase to Rs 19 lakh in the ninth year.

The dues, say company sources, had accrued during the seven years the Sahagunj factory remained closed before the company was taken over by the P. K. Ruia-controlled Ruia Group in end-2005. Of the total dues, Rs 11.7 crore is the energy bill and the rest taxes and duties.

The agreement would ensure restoration of power supply to the plant. Dunlop India had surrendered the power connection while declaring the suspension of production on November 30, 2008.

Though approximately 250 workers of a total of 1,190 were inducted in March 2009 for maintenance purposes, production could not be resumed as WBSEDCL had insisted on the payment of past dues as a pre-condition for restoration of supply.

In a press release issued later, the company Chairman, Mr P.K. Ruia, said the plant was expected to resume production within a week of the restoration of power supply. Dunlop has previously contested WBSEDCL’s claim of uninterrupted power supply to the Sahagunj facility without any payment during 1999-2006. The company had blamed the State power utility of allowing the misuse of power supply and piling up a huge bill. A case was also filed in a court of law in this regard.

Today’s agreement, however, suggests that the company has finally accepted WBSEDCL’s demand.

More Stories on : Announcements | Tyres | Power | West Bengal

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