The Hindu : Andhra Pradesh News : Efforts on for revival of Cement Corporation of India unit

Online edition of India's National Newspaper
Sunday, May 30, 2004

Andhra Pradesh

Andhra Pradesh

Efforts on for revival of Cement Corporation of India unit

By S. Harpal Singh

ADILABAD, MAY 29. Given the say of Left parties in the economic policies of the United Progressive Alliance Government at the Centre, hopes of revival of over Rs. 40-crore Cement Corporation of India's Adilabad unit are raised. Trade unions at CCI Adilabad and at six other units across the country are launching a two-pronged effort for the revival of sick units.

At the State level, the Adilabad CCI Employees' Union, led by the CPI State secretary and Nalgonda MP, Suravaram Sudhakar Reddy, is slated to meet the Chief Minister, Y. Rajashekhara Reddy, on May 31 in order to submit proposals for revival of the unit. At national level, trade unions from different CCI factories would the meet the Prime Minister, Manmohan Singh, urging him for revival of the seven of the 11 units under the leadership of the CPI MP and AITUC national general secretary Gurudas Gupta.

The Adilabad CCI factory, which employed 382 persons directly and nearly 500 indirectly, was declared sick in 1996 subsequent to the then Union Government's withdrawal of budgetary support following reforms. The reforms threw the CCI in disarray and in due course it was declared sick despite the Board for Industrial and Financial Reconstruction recommending its revival five times.

During the course of the factory being declared sick, 269 employees opted for voluntary retirement. The factory figures in the list of non-operating units. The last Union Government had called for tenders to sell all the units of CCI across the country. However, except the Rajban unit in Himachal Pradesh no purchaser came forward to buy the other units including the one in Adilabad.

At present the BIFR is awaiting an approval from the Union Government for closure of the non-operating units so that the process for privatisation becomes easier.

The CCI Employees' Union has prepared proposals for revival of the Adilabad unit wherein it seeks from the State Government a sales tax holiday for five years from restart of production, rescheduling payment of ST dues of Rs. 63 lakhs over the next five year and waiver of the Rs. 87 lakh interest accrued on the principal amount, rescheduling of payment of power charges dues of nearly Rs. 15 crores over the next five years and waiver of Rs. 16 crore surcharge/interest on the power charge dues, repayment of royalty principal amount of Rs. 53 lakhs due in instalments spread over five years from restart of production, waiver of Rs. 2-crore interest on delayed royalty payment and suitable instructions to Government offices within a radius of 300 km to purchase cement from CCI Adilabad only.

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