The Kumardhubi factory in Dhanbad. (Gautam Dey)

Dhanbad, July 7: Residents of Kumardhubi in Nirsa, about 40km from here, are ecstatic that a local British-era metal casting company that had to be shutdown twice in 1979 and 1995 after a series of takeovers, is all set to reopen, throwing up job opportunities for as many as 2,500.

Kumardhubi Metal Casting and Engineering Limited (KMCEL), that produced track sections used in underground mines and employed around 850 workers at the time of its closure in 1995, will now be taken over BESCO to manufacture railway wagon parts to be run by Bharatiya Electric Steel Company (BESCO).

Bihar State Industrial Development Corporation (BSIDC), which used to run the factory in association with Tata Steel (then TISCO) till 1995, has agreed to grant a 66 year lease to BESCO following a tendering process in which there were five contenders.

Nirsa MLA Arup Chatterjee, who played a key role in the revival of the company by helping former employees fight a long-drawn legal battle, said, “It’s a victory for the labourers who fought a long battle by spending their own money.” He clarified that it would take another three months to complete legal formalities, the first step being the preparation of a draft agreement between BESCO and BSIDC to be presented before Jharkhand High Court on July 16.

Originally owned by Bird Company during the British era, Kumardhubi Engineering Works was taken over by the Bengal government and run till 1979, after which it was taken over by Bihar State Industrial Development Corporation. It was renamed Kumardhubi Metal Casting and Engineering Limited in 1983 with the BSIDC and Tata Steel jointly running it till 1995. At the time, Tata Steel owned 49 per cent stake while BSIDC remained the majority partner with 51 per cent stake.

In 1995, the company had to be shut down with BSIDC not agreeing to Tata Steel’s desire to up its stake.

Meanwhile, Bank of India, which had provided a loan of around Rs 2.5 crore for reviving the company in the early ’80s, appealed before the Debt Recovery Tribunal in Ranchi in 2005. The tribunal ordered for an open auction of the company. But, the auction was stayed after workers moved court. The official liquidator insisted on early disposal of the company’s assets and liabilities, but the labourers, aided by Chatterjee, fought a long legal battle.

“All former employees who have not reached the retirement age would be absorbed in the company,” said Chatterjee, adding that they would all receive salary arrears.