JK staff seek BIFR action against UP government

The workers of Kanpur-based JK Cotton Spinning and Weaving Mills have asked the Board for Industrial and Financial Reconstruction (BIFR) to serve showcause notices to the UP chief secretary, principal secretary, and the heads of industry, for failing to implement its orders.

The workers' body, JK Karmachari Audyogik Utpadak Sahkari Samity, has written to the BIFR urging it to invoke the powers given to it under the Sick Industrial Companies (special provisions) Act, 1985. The BIFR is likely to take up the matter next week.

The letter, made available to Business Standard, points out the JK revival plan, approved by the BIFR on November 12, 2002, had entrusted the state government with certain tasks.

These include facilitating the sale of designated properties to raise money for revival, settle all the labour/lockout matters, and to grant the standard package meant for sick industries.

The letter alleged despite assurances by the state government to the BIFR and the monitoring agency, Industrial Finance Corporation of India, no action was taken.

It accuses the state government of obstructing, and then stopping the sale of designated properties when the Kanpur Development Authority began the process. This sale, the letter argues, was in accordance with the government's directives for the revival of sick industries.