The announcement, which was made around 12.45 am on Wednesday has shocked the 133 workers of the plant. The plant is engaged in supplying compressed oxygen, argon and nitrogen gases.

In a communique addressed to the secretary, industries, energy and labour department of the state government, BOC India has sought the closure of the unit under Section 25-O of the Industrial Disputes Act, 1947.

Ironically, the section itself has been challenged by the company before the Allahabad high court on the grounds that it is violative of Articles 14 and 19(1)(g) of the Constitution of India.

The communique, written by operations manager SN Bhattacharjee, has termed the Ghatkopar unit as unviable, citing losses for the past seven years by the plant, stiff competition from local companies, and closure of some divisions of the company.

The Indian Oxygen Employees'Union, however, has opposed the reasons for closure of the unit. "The closure has been proposed because the workers did not accept the long-standing demand of the company for a fixed dearness allowance," said a senior union representative HN Trivedi.

According to the union, the closure will only facilitate disposal of the prime land on which the unit is located. The union has claimed that the workers at the Ghatkopar plant have been satisfying all the productivity norms.

The plant has an installed capacity of 31,200 cum/day for compressed oxygen, 14,400 cum/day each for compressed nitrogen and compressed argon. The utilised capacities for these products are 6,214 cum/day, 365 cum/day, and 568 cum/day respectively.

The company reportedly had an income of around Rs 240 crore for the year ended September 30, 1998. Although the operating loss has been shown at Rs 2.67 crore, BOC India's accounts show a profit after tax of Rs 6.1 crore.