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Dunlop halts production at Ambattur unit

Priscilla Jebaraj

This follows TNEB's step to cut power supply to the plant


  • Appeal for reduction of the approximately Rs.45 lakh bill made
  • Workers to get salaries as usual on November 10

    CHENNAI: Two months after Dunlop India's Ambattur factory restarted production, a cut in power supply has halted work yet again.

    The plant had then reopened after eight years when the Ruia Group acquired the ailing tyre company.

    The Tamil Nadu Electricity Board (TNEB) cut supply to the plant on October 31 as current consumption charges for September were unpaid. Production has been stopped since then.

    Dunlop India's Vice President for Communications D. Nandi said the company has appealed for a reduction of the approximately Rs.45 lakh bill for September. It is in talks with TNEB to cut the current rate of Rs.14.67 per unit to a "reasonable" level.

    However, a senior TNEB finance official told The Hindu that the outstanding bill was due to be paid on October 7, and is still pending despite an extension till the end of the month. There is no other disagreement about the bill, and as soon as it is paid, power will be restored.

    He said that the Ambattur factory management told TNEB that it is waiting for the money to be sent from Dunlop India's Kolkata headquarters.

    Mr. Nandi said the stoppage is "just a hiccup... teething troubles that will soon be overcome."

    However, A. Sivakumar, joint secretary of the Dunlop Factory Employees Union said that in a meeting held with the local management on Tuesday evening, the union was told that it will take four more weeks to restart production.

    A TNEB official said apart from the consumption charges, the company also owes TNEB reconnection charges since power had been disconnected at the plant for over five years. This sum is being paid in ten monthly installments.

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