Raymond's plan to develop Thane plot delayed over labour issue

MUMBAI: Textile major Raymond's plans to develop its 125-acre plot housing its plant in Thane, is likely to get delayed as the Maharashtra Government has refused to give it an NOC for the purpose unless the company resolves the compensation issue with its workers there.

"The company will have to take a No Objection Certificate from the Government to develop the plot. However, we have decided not to give permission to the company for its realty plans, unless the deadlock (with workers over compensation) is resolved. We don't want the unit to shut down," the State's Labour Minister, Hasan Mushrif, told PTI here.

The company has been negotiating on a compensation package with its workers for a long time. While the workers have stuck to their demand of Rs 350-crore as compensation, the management has refused to pay more than Rs 200-crore.

The Union had sought Government intervention in the matter.

Given the deadlock, the company has not been able to proceed with its realty foray which now looks headed for a delay.

Mushrif said, "unless the compensation issue is resolved, the State Government would not give its go-ahead to Raymond's realty plans."

"Our concern is that the compensation issue should be amicably resolved as soon as possible through negotiations," he said.