Bengaluru: In what could be a good news for employees of ailing Falcon Tyres Limited, State Government has agreed for revival of the defunct factory with the leadership of the Employees Union. A decision to this effect was taken at a high-level meeting chaired by Chief Minister H.D. Kumaraswamy (HDK) held at his Official Residence, ‘Krishna’ at Bengaluru yesterday, convened to explore the revival of Mysuru-based defunct Falcon Tyres Limited.
Chief Minister HDK directed the Employees Union to submit the rejuvenation plan proposal to the State Government to take further steps for revival of the factory. A judicial case relating to the factory will come up for hearing in the Court on June 4. The Government will convey its decision of revival plans to protect the larger interest and livelihood of all 3,700 employees of the ailing factory.
Appreciating the Employees Union for coming forward for its revival plan, the CM promised that the State Government would give all guarantee to the Bank to borrow the loan of Rs.120 crore, apart from providing a working capital of Rs.150 crore besides another Rs.20 crore for improvement of infrastructure facilities.
The meeting also decided to constitute the Board of the Management of the Factory.
The meeting was attended by State Large and Medium Scale Industries Minister K.J. George, Higher Education and Mysuru District in-Charge Minister G.T. Devegowda, PWD Minister H.D. Revanna, Additional Secretary to Finance Department I.S.N. Prasad, Principal Secretary to Department of Industries and Commerce Gaurav Gupta, in addition to senior officers and employees’ representatives.
The factory, established over four decades ago, was one of the largest two-wheeler tyres and tubes manufacturers in Asia. It may be recalled that the meeting chaired by Large and Medium Scale Industries Minister K.J. George at Bengaluru on Feb.16 last had explored the possibility of establishing a Co-operative Society or Co-operative Union through employees of the factory.
This meeting also discussed the possibilities of raising the money through employee share and also mop-up money through public offers, considering the profitability of tyre companies and also looking at other tyre companies that are making profits and also discussed all other options of reviving the factory.
This post was published on May 29, 2019 7:46 pm