The Hindu Business Line : BIFR gives time to promoters on Hindustan Cables' revival

THE Board for Industrial and Financial Reconstruction (BIFR) has asked the Ministry of Heavy Industry and the promoters of Hindustan Cables Ltd, to firm up their views on the techno-viability study report (TEVS) being prepared by the IIT and indicate the revival plan for the company within a stipulated time frame.

In its order the Bench stated "... in view of the large product lines of the company and in the interest of all concerned, the Bench is allowing further time to the owners of the company and the Ministry to finalise their views on the TEVS report to be submitted by the IIT and indicate how they would like to handle the revival of the company within the shortest possible time."

However, if at the end of the stipulated time frame, the board does not receive the views of the promoters, it will pass further orders, which may include change of management or even winding up of the company.

Pointing out that the higher courts had in some cases made observations against the BIFR in showing leniency towards PSUs in finalising their revival schemes as compared to public companies, the board said, the company has been before the BIFR since 2002 and the Government is yet to make up its mind regarding HCL's revival.

"The earlier TEVS had been conducted in 2002. In case the Government had wanted a subsequent TEVS to be conducted, it could have been done shortly, thereafter, by obtaining the board's approval," it observed.

The final views of the Government should be available to the board and the operating agency (OA), State Bank of India, in a given time period, the order said. The OA will have further 15 days to examine and submit to the board a rehabilitation scheme.

HCL, established in 1952, has been a regular supplier of telecom cables to the Department of Telecom, Bharat Sanchar Nigam Ltd and Mahanagar Telephone Nigam Ltd as well as to the Defence organisations.