Ending an 11-month hiatus, the Sahaganj unit of tyre maker Dunlop is expected to resume production in 15 days as the West Bengal electricity authorities restored power supply to the plant after the company settled its outstanding energy bill.
"A bank guarantee of Rs.1.6 crore was paid today (Monday) to the WBSEDC (West Bengal State Electricity Distribution Co) and restoration of power to the plant is currently in progress," a Dunlop India spokesperson said.
The company management suspended work at Sahaganj from November last year citing the meltdown. It re-opened March 6, but could not resume production as there was no power connection.
WBSEDC disconnected electricity connection to the Dunlop unit on account of an outstanding bill of Rs.12.5 crore for the period 1999-2006 when the Sahaganj unit remained closed.
Dunlop was earlier owned by Manohar Rajaram Chhabria. After Chhabria's death, the city-based Ruia group acquired the company from his family in 2005 and resumed commercial production in January 2007.
The company said in a statement that the arrears would be repaid in 108 monthly instalments as part of a pact reached with the WBSEDC Sept 3, 2009.
The immediate target for the Sahaganj plant is to process about 40 tonnes of rubber a day.
Dunlop's other plant at Ambattur in Tamil Nadu started operations last month.