THE FERTILISER Industries Coordination Committee (FICC) is expected to issue a notification finalising approval of subsidy to Duncan Industries Limited (DIL).
The notification, expected to be issued in the next one week, will pave the way for DIL to resume production of fertiliser at its Panki plant.
The FICC is a government body under the Ministry of Fertilisers and Chemicals, which regulates the market price of fertilizer in the country.
The DIL management said that when the subsidy package for the plant was being planned, the market price of fertilizer was much lower than the present price.
As a result, the company was incurring financial loss, resulting in the shutdown of the plant once again in October 2005.
Now, a new subsidy package is being planned in accordance with the current fertilizer market price.
The per ton cost of production of fertilizer is calculated by the FICC after taking into account the cost of naphtha, power, coal and water.
Centre for Indian Trade Unions and DIL employees union’ senior leader Arvind Kumar said the future course of action for starting production would be chalked out only after a notification was issued by the FICC.
After this notification, a meeting between the management and the employees’ union was also likely to take place to ensure smooth functioning of the plant, added Kumar.
{{/usCountry}}After this notification, a meeting between the management and the employees’ union was also likely to take place to ensure smooth functioning of the plant, added Kumar.
{{/usCountry}}Despite the fact that employees of DIL are getting their wages on time, they are worried about its reopening. Due to unnecessary delay in the start of production, employees are apprehending another prolonged negotiation between the government and the management before normal production resumes at the plant.
It was only after the sustained efforts of the DIL employees’ union, the State Government and the management that the plant reopened in August 2005. But, in October last, production at the plant came to a grinding halt.