Six labour unions of Incab Industries Limited have decided to sign the memorandum of understanding with the Kolkata-based promoter A K Chakraborty so that the draft revival policy for Incab can be submitted to the operating agent of the sick cable maker, State Bank of India. SBI will forward the package to the Board for Industrial and Financial Reconstruction (BIFR).
A six-member committee of heads of six trade unions of Incab Industries Limited and the promoter agreed on the issue here today. However, there was confusion among Incab employees following publication of a closure notice by BIFR in an English newspaper.
The notification fixed October 19 as final date for hearing on Incab. Last month, SBI had approved the draft submitted Chakraborty and his company Adarsh Holdings.
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The meeting today lasted for four hours. Both sides agreed that once production started, employees would be paid 60 per cent of salary for the first three years. The balance payment would be made gradually as production expanded. The promoter agreed to pay retirement benefits to those who had retired during the closure period.
Chakraborty has promised to invest Rs 40 crore to revive Incab. Of this, Rs 30 crore would come from outside investors, and the remaining Rs 10 crore from himself. The fund would be used for modernisation, purchase of raw materials and payment of electricity and water dues.