Jindal Aluminium to shut down Bangalore unit

By Our Special Correspondent

BANGALORE, JULY 28. Jindal Aluminium has decided to close its factory in Bangalore on August 16 and a notice has been served to the employees on July 25 giving reasons that the profitability of the company had been affected by the high rate of import duty (25 per cent) on the basic raw material (aluminium ingots).

The chairman and managing director of Jindal, Dr. S. R. Jindal, at a press conference here today charged that the nexus between the Union Finance Ministry, headed by Mr. Yashwant Sinha and Hindalco, a Birla group company manufacturing aluminium ingots, had made the former increase the import duty to 25 per cent to give the latter a selling-price advantage.

He said that the company had an installed capacity of 52,000 tonnes per annum and that it had achieved a production of 29,505 tonnes in 1999-2000 which had further come down to 26,985 tonnes the following year.

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Section  : Business
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