The development by the Ruia-led management has brought joy to some 650 workers.
Jessop issued suspension of work notice on May 15 alleging worsening law and order and lack of productivity at the plant.
At the reopening, state Finance Minister Amit Mitra said, "We are happy that work will resume at Jessop at the initiative of state Labour Minister Malay Ghatak."
Ghatak, who was also present on this occasion, said there could be differences in opinion but that needs to be bridged.
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Group chairman Pawan K Ruia said, "The government helped whole heartedly in solving the problem. What we have decided that a committee would be formed with members of state productivity council, union and the management."
"The committee would decide how much goods can be made with the existing workers and infrastructure, how much manpower is required with the existing machines. If the workers produce more goods then they will get incentives," he added.
"We never had problems with majority of the workers or work but proper law and order has always been a concern," he said.
As per the agreement signed for reopening, the plant will begin production in 60 days and the total workforce would be divided into four groups and each group will work for 15 days till the plant resumes production.
Ruia said, "I have agreed to open a CSR club headed by my wife at the request of the finance minister.