Dunlop India president T C Goel has written to West Bengal chief minister Budhadev Bhattacharya to intervene in the rehabilitation of the company. "I wish to urge you to devote your kind personal attention to this matter and save Dunlop from becoming another fact of history," the communication reads.
Goel's letter, written on July 31, 2001, says the reliefs and concessions sought by the company from the state government has not met with any results. To reiterate its demands, the Dunlop brass had also met principal secretary to the chief minister A K Deb earlier in July.
The company has sought concessions in electricity tariff, sales tax and property tax. It has also asked the state government for a soft loan. So far, the state government has not taken any decision on the matter.
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Earlier, on July 20, 2001, Goel had sent another letter to the chief minister urging him to use his good offices to expedite the approval of the company's revival scheme by the Board for Industrial & Financial Reconstruction (BIFR). In the past, Dunlop had moved the Appellate Authority for Industrial & Financial Reconstruction (AAIFR) to expedite the proceedings at BIFR. AAIFR, in turn, had asked IDBI, the operating agency, to come up with a draft rehabilitation scheme by July 24.
Because of the delays, Goel said, the company is losing money to the tune of Rs 27 lakh per day or close to Rs 8 crore per month and its resources are depleting fast.
Last year, the promoter of the company, Dubai-based Manohar Rajaram "Manu" Chhabria had invested an amount of Rs 26 crore into the company, besides injecting Rs 6 crore by way of an LC support. "Under such circumstances, if the revival scheme is not approved, the management will have no other alternative but to resort to a lock-up at the plants. This will only send wrong signals to the investor community," Goel had written in his letter of July 20.