Duncan case: Cong up in arms against BIFR move
THE CLOSURE of Duncan and now the subsequent transfer of the case to the Board for Industrial and Financial Reconstruction (BIFR) has kick-started a major controversy in the city. The Goenka group has handed over the Duncan case to BIFR on the pretext of its net worth falling below its liabilities.india Updated: Sep 18, 2006 01:15 IST
THE CLOSURE of Duncan and now the subsequent transfer of the case to the Board for Industrial and Financial Reconstruction (BIFR) has kick-started a major controversy in the city. The Goenka group has handed over the Duncan case to BIFR on the pretext of its net worth falling below its liabilities.
Congress has held the Duncan management and its only recognised employees CITU responsible for the turn of events. Expressing his concern over the transfer of case to BIFR, the Union Minister of State for Home Sriprakash Jaiswal stated that the matter would be discussed with the fertiliser ministry.
He said that the Union Government would also ask BIFR to conduct a detailed study of the balance-sheet presented by the management.
Former district president of the Congress and senior employee of the Duncan, Abdul Mannan held CITU responsible for closure of the fertiliser plant.
“The management should have diverted funds from its other companies for reviving the factory,” Mannan said.
He also expressed his resentment on CITU’s proposal to give the plant on lease. “When Duncan is to get subsidy on the basis of old valuation up to 2007 then how come the question of giving the plant on lease arise,” Mannan asked. It was only after the conversion of the plant from coal to gas based that any issue of the plant to be given on lease could be discussed, Mannan said. Accusing CITU for the entire adverse situation, Mannan said, “Office-bearers of the CITU remained a mute spectator to the entire proceedings and never exerted any pressure on the management for its revival.”
It may be pointed out that the production at Duncan was stopped for the first time in March 2002. Then after a prolonged phase of three years and much needed support of the State Government the lay-off was lifted in July 2005. The production at the famous Chand Chap urea once again resumed on August and Chief Minister Mulayam Singh Yadav re-dedicated the plant to workers. But on October 18, 2005 production of urea once again came to a grinding halt.
Now all hope of its revival are remote after the transfer of the Duncan closure issue to BIFR by its management.
First Published: Sep 18, 2006 01:15 IST