Modi Rubber workers blame FIs for factory woes

New Delhi, Oct 3 (UNI) Employees of Meerut-based Modi Rubber Ltd today blamed financial institutions (FIs) for blocking revival of the sick unit pushing hundreds of families to penury.

According to the Modi Rubber Shramik Sangh, the revival plan worked out by the Bureau of Industrial and Financial Reconstruction (BIFR) has not gone ahead as the FIs want to offload their stake in the company.

Allahabad High Court had ordered status quo directing the workers to approach BIFR for resolving the issue.

''We made an application to BIFR and the hearing took place on September 5, but the IDBI, which was appointed to revive the company is busy making arrangements to make a fast exit,'' said Mr Dilbagh Singh, President of the Sangh.

The Sangh, he said, would appeal to Prime Minister Manmohan Singh to seek his intervention to save the company.

''We will appeal to the Prime Minister on this issue and request him to change the existing four Directors of the company and start the factory again through an agreement,'' Mr Singh said.

The BIFR, which was supposed to pass an order in the first week of September, had not done so, said Sangh advocate Achintya Dvivedi.

''During the last five years, many of the workers have died, their children left schools to work for their living. The government is also quiet on this issue,'' Mr Dvivedi said.

On May 23, BIFR had passed an order, which said the Board of Directors of the company would not change, unequivocally barring the transfer of shares. BIFR then appointed IDBI as the operating agency for preparing a comprehensive proposal for revival of the company.

The workers say they want the plant to be reopened so that they can earn their livelihoods. ''We will not insist on repayment of dues of Rs 136 crore to us,'' Mr Singh said adding the plant could be reopened with a performance bond of Rs 100 crore subject.

UNI SRS/FZ RA HS1811