Ruia after the meeting with Mamata. (Bishwarup Dutta)

Calcutta, Dec. 10: The government today ruled out providing the Rs 100-crore working capital that Dunlop chairman Pawan Ruia had sought for reopening the factory.

“It is not the practice for the WBIDC (West Bengal Industrial Development Corporation) to provide working capital to companies. Even if we made an exception in this case, Rs 100 crore is a large amount and it won’t be possible for the WBIDC to sanction it,” industries secretary Sabyasachi Sen said after a meeting with chief minister Buddhadeb Bhattacharjee and industries minister Nirupam Sen.

He added that bodies like the WBIDC also did not provide working capital in other states.

After the government rej- ected the demand for cash, Ruia called on Trinamul Congress chief Mamata Banerjee at her Kalighat house.

“I apprised her about the problems of reopening the Sahagunj factory. Didi, too, wants the factory to reopen. I request the state government to consider the incentives we are asking for,” he said.

The company declared a suspension of work on Nov- ember 30 after the CPM and Congress trade union wings refused to sign a pay-cut agreement. It had stopped production a fortnight before that, citing a cash crunch.

Observers said Ruia’s visit appeared to have been prompted by Mamata’s threats at a rally in Sahagunj where she said he should sell his assets to clear workers’ dues, if necessary.

She echoed Ruia’s demands today. “The state should provide Pawan Ruia incentives like exemption from VAT and other taxes, a soft loan and cheaper electricity. Ruia told me he was keen on reopening the Dunlop unit but the government was not fulfilling its promises made in 2006,” she alleged.

“The state had offered everything — from land to electricity — almost free” to the Tatas for the Nano project, she said, adding: “Dunlop is a special case.”

State CPM secretary Biman Bose suggested that the Tatas and Ruia could not be compared. “Puffed rice and candy cannot be the same,” he said.

Justifying the move to call on Mamata, a Dunlop spokesperson said: “We went to explain the situation at Dunlop to her. She has understood our position and extended all help. Now all political parties — (the) Left, Congress and Trinamul — stand united on the cause of Dunlop.”

Industry circles were surprised to see Ruia at Mamata’s door. “It will set a bad precedent. Do we have to run from one end to other to get going?” asked an industrialist who did not want to be named.

Another saw “no harm in talking to the Opposition”, but added: “Not everything is done in public.”

The Dunlop spokesperson said the government had not informed them officially about its decision.

The company now wants “a bridge loan” from the government, which it promises to repay once a bank provides it with the capital, said sources.