Plagued with inordinate delay in re-opening its plant in Shahgunj in Hooghly district, Dunlop India Ltd is planning to issue an ultimatum to the West Bengal government to restore power at its plant by October 19.

“We plan to issue an ultimatum to the West Bengal government to come up with a decision whether they want to restore power connection after which we will take a call on what to do with plant,” Dunlop India Chairman Pawan K Ruia said on Thursday.

He said, “We have written to everyone, including the chief minister about the inordinate delay in reconnection of power at Shahgunj,” he said.

“We have opened letter of credit and paid the dues as per agreement, but now they are raising questions on terms,” Mr. Ruia said.

The company has applied for permission to set up a 50 MW captive power plant at the Shahgunj unit, which is out of production for a year now, he said.

Contacted, the West Bengal State Electricity Distribution Co Ltd officials said Dunlop was being asked to meet the norms as per regulatory commission.

“Dunlop wants LC to be with recourse and our requirement is non-recourse. This is the only hurdle otherwise the company has met all other conditions,” WBSEDCL sources said.

Meanwhile, power was restored at Dunlop’s Ambattur plant in Tamil Nadu on Wednesday, which was also closed for over a year, Mr. Ruia said.

The unit, which may re-open as early as on Monday, aimed at producing 40 tonne of tyre a day initially, he said.

RELATED NEWS

Dunlop to take back dismissed employees December 14, 2009