The government has said that it will be a temporary takeover, and it will endeavour to find a buyer for the unit. But perhaps the fear at the back of the government's mind is not the unreasonable one that the unit will be closed for good once it goes to the Board of Industrial and Financial Reconstruction (BIFR). The Board of Industrial and Financial Reconstruction has proved to be the graveyard of several companies, and it has proved totally ineffectual in its original purpose ofreviving sick corporates.

In cases of companies such as Dunlop, what is needed is a law similar to the bankruptcy law in the United States. This ensures a temporary period during which the company is protected from its creditors while it works out a package for revival. This kind of time-bound period is very necessary, during which a company in difficulties is not harried by its bankers, some of whom may in fact be responsible for its difficulties. A breathing space will enable companies to get an opportunity to find buyers or finalise a restructuring programme, enabling assets to be put to alternative uses swiftly.