Ministers hold meeting with company officials; unit to reopen in 45 days, once environmental clearance for extraction of clay is secured
Ministers hold meeting with company officials; unit to reopen in 45 days, once environmental clearance for extraction of clay is secured
The English Indian Clays Limited (EICL) factory at Veli here is set to be reopened, after remaining closed for more than two years.
The decision was arrived at a meeting that Industries Minister P. Rajeeve, Labour Minister V. Sivankutty and Transport Minister Antony Raju held with the company officials on Wednesday. The company will reopen within 45 days, once the environmental clearance for extraction of clay is secured, according to a press release issued by Mr. Sivankutty’s office.
The Thapar Group of Companies took over ownership of the company in the early 1990s. Till then it was a joint venture between a local entrepreneur with U.K.-based English China Clays Ltd.
Ban on clay mining
A Kerala High Court order in 2018 prohibited the company from clay mining in the Melthonnackal and Veyiloor villages, creating a shortage of raw materials. But it later managed to restart operations using alternative mining locations at Thonnackal. However, it was closed down in August 2020, with the management citing the lack of demand from clients as the reason for not reopening, despite persistent demands from employees’ unions.
After the closure, quite a few have been forced to take up odd jobs, while the majority who have not, have unpaid house loans, insurance policies, rents and fees.
