Ahmedabad Kakadia refuses to reopen his diamond unit, says running it is impossible

The state government’s diktat to the diamond unit owners to resume work seems to have no effect on BJP MLA Vallabh Kakadia. The ruling party leader owns a unit at Rakhial, which remains closed despite the opening orders issued by the government on seeing the plights of the diamond workers.

Terming the prevailing crisis as an “earthquake in the diamond industry”, the Rakhial MLA said it was “impossible” for him to run the unit, as most of the raw materials come from Surat and Mumbai. “Since October 23, we have not received any raw materials,” he said.

He went on to say that the situation is so grim that the state government can do little to improve it. “In order to come out of this situation, we require a financial package to the tune of Rs 10,000-20,000 crore. This can be provided by the Centre and not the state,” said Kakadia.

When pointed out that over 70 per cent diamond units reopened in Surat on Monday after the Labour Commissioner threatened criminal action against the unit owners, he said it was not possible in Ahmedabad.

“I don’t think such actions and declarations from the government will help the diamond industry,” Kakadia added.

He further said he might consider re-starting the unit between December 25 and January 1, but refused to give a commitment. “Why should one run a unit if there is only loss happening?”

Meanwhile, Maha Gujarat Janta Party’s Gordhan Zadafia, who also owns a diamond polishing unit in Ahmedabad, re-opened on December 15. But much to his surprise, just 20 per cent attendance has been recorded so far. He has been seeking a bailout package for the industry and workers.

“We are using raw materials that we had received before the Diwali vacation. I will be able to run my unit only for a month if the situation remains the same,” Zadafia told Newsline.

He added: “Right now, we are facing a loss of 30 per cent. It is not practical to run a unit under such circumstances. The state government needs to provide us loans at the same rate of interest as they provided to the Tatas for the Nano car project.”

Source: expressindia