India Dow unit asked to halt plant construction

An Indian unit of Dow Chemical Co has been asked to stop construction work on a research centre in Pune, after protests by locals worried about potential pollution, Indian newspapers reported on Saturday.Work has been stopped for a month while a state government-appointed panel reviews the pollution concerns, the Business Standard newspaper said.

Dow, the largest U.S. chemical maker, last year said it will spend $100 million for the global research and development centre near Pune, which was to be operational in 2008.

In July, local villagers and activists attacked the construction site, setting an office and vehicles on fire.

For many Indians, Dow is synonymous with the 1984 industrial accident at Bhopal, when tonnes of toxic gas leaked from a Union Carbide pesticide plant, killing nearly 3,800 people. Dow Chemicals later took over Union Carbide.

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