Bharuch: As many as 250 workers of Videocon company’s plant at Chavaj in Bharuch district are relieved from job suddenly. The company had sought their resignations as it has reduced the production and discontinued the product. Rashtriya Majdoor Sangh has given a memorandum to district collector claiming that the labourers are relieved without voluntary retirement scheme or any other compensation.The company however says that labourers are leaving job on their own as production has been reduced and they find better opportunity elsewhere.

The company is facing the issue of mounting debt. Dena Bank and Central Bank has classified the company’s loan as non performing asset (NPA). Some estimates showed the banking sector’s total exposure to Videocon stood at Rs 40,000 crore. Even if half of these loans are classified as NPAs, it could widen the hole for all lenders already struggling to clean up their books. Company’s share price has been falling on rising concerns over debt repayment issue. The group has sold several assets in the past three years to meet its commitments and plans to sell more. The direct-to-home TV business is being merged with Dish TV. Funds are blocked in power and coal businesses. Stake in a general insurance joint venture is likely to be reduced. In 2013, Videocon sold its Mozambique gas field. In March last year, the company sold spectrum to Bharti Airtel.