CALCUTTA, February 20: The Dunlop India board submitted its revival plan to the Union ministry of finance on Friday, sources in the company said. The official spokesman, when asked, confirmed the news to The Indian Express. However, it did not submit the plan to the state government.Moreover, the company's management failed to attend a tripartite meeting, scheduled on Friday, with the unions and the West Bengal government. According to the state labour commissioner, Suvesh Das, the company's management did not want to face the unions now as it was "not prepared yet."
The plan submitted to the Union finance ministry hinges on the immediate availability of working capital from banks and financial institutions. Dunlop's senior management had already met finance minister P Chidambaram around 10 days ago with a plea that the banks be urged to increase the company's working capital credit limit and disburse the money promptly.
Sources in the company said that both the Union finance ministry and labourministry had reacted "positively" to the request. The ministries had said that the company board should formulate a "reliable, workable plan" which can be implemented.
The revival plan also proposes that the rest of the funding schemes of the company, such as the ECBs and rights issue, will follow once the company is able to reopen its factories.
The immediate funds requirement of the company has been estimated between Rs 50 crore and Rs 70 crore, while the working capital need has been fixed at Rs 120 crore. However, the banking consortium of Dunlop has frozen the credit limit extended to the company at Rs 33 crore.
The company's board met in Mumbai on Tuesday where managing director PJ Rao briefed the members about the happenings.
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
