BUDGET 2000
SPECIALS
INTERVIEWS
COMMENTARY
GOVT&ECONOMY
Y2K: BIZ FEATURES
INDIA & THE WTO
CREDIT POLICY
BIZ IN THE USA
CARS & MOBIKES
MANAGEMENT
CASE STUDY
BIZ-QUIZ
USEFUL INFO
ARCHIVES
NEWSLINKS
SEARCH REDIFF

BIFR proposes winding up of 8 PSUs

The Board for Industrial and Financial Reconstruction, or BIFR, has proposed winding up of eight ailing private sector units and drawn up revival plans for two others.

The board observed that Shree Mahavir Ispat Limited and Jhalini Tools India Limited should be wound up as they failed to implement their respective rehabilitation schemes.

It further stated that Shangrila Latex Industries, W S Telesystems Limited, Ravi Hi-Tech Limited, Caledoin Jute and Industries Limited, Sirilaxmi Fibres Limited and Saraf Textile Industries cannot be revived on a long term basis because of the absence of a rehabilitation scheme with means of finance fully tied up. In addition, since no other parties had shown interest for taking up these units, the board found it just and equitable to wind up the units.

For Gilt Pack Limited, the board has proposed a revival plan which envisages partial reduction and restructuring of liabilities of financial institutions and banks.

The cost for the entire plan, which will have to be borne by the promoters, has been put at Rs 30 million, of which Rs 20 million is additional margin money for working capital and the rest for part reduction of liabilities.

The board forecast that by 2006-2007, the net worth of the company will become positive and by 2007-2008 all accumulated losses would be wiped out.

The board's Rs 2.18 million revival plan for Zenith Alloys and Steel involves re-orientation of product-mix, capital expenditure and restructuring of bank liabilities.

The revival plan, which involves capital expenditure of Rs 7,30,000 and Rs 1.45 million margin money, will be financed by way of unsecured loans from promoters.

UNI

ALSO SEE

India to allow pension funds to invest in capital markets; may abolish BIFR

Scrap sick industries law and BIFR to weed out corruption, says Vittal

Business