The Hindu Business Line : Appeal filed against BIFR order to wind up Autokast

THE State Government has filed an appeal before the Appellate Authority for Industrial and Financial Reconstruction against the order of the Board of Industrial and Financial Reconstruction (BIFR) to wind up State-owned Autokast Ltd at Chertalai in Alapuzha district.

The Chief Minister is understood to have convened a meeting on Tuesday to discuss the revival of the ailing unit. The Industry Minister, the local MLA and trade union leaders are expected to attend the meeting.

The issues that are likely to be discussed are one-time settlement with bankers, deferment of payment of interest to Kerala Industrial Revitalisation Fund, concession for power, handing over of the company's 110-KV sub station to KSEB (Kerala State Electricity Board) and making working capital available, Mr Jayachandran, General Secretary, Save Autokast Forum, told Business Line on Sunday.

He said that since the Government had decided to freeze the recommendations of the Enterprises Reforms Committee, which had suggested closure of the unit, the Government might consider the revival package submitted by an expert committee.

A "viable project proposal" prepared by an expert committee constituted by SPATO, an organisation of the officers of public sector units and autonomous bodies in the State, was submitted to the State Government in November.

"The employees and officers of the company have pledged their wholehearted commitment and active support for the implementation of the proposal," said Mr Jayachandran.

Notwithstanding, Mr Jayachandran alleged that the Government did not consider this revival package and stuck to the recommendation of the Enterprises Reform Committee.

The committee, upon evaluation of the physical and financial performance of the company, had recommended privatisation of the unit, with management control with strategic investors, he said.

The State Finance Department is understood to have turned down the demand of Rs 3.5 crore soft loan as part of the SPATO revival package, signalling that it was not interested in the proposal, an official source said.

The company with a paid-up capital of Rs 17.97 crore had an accumulated loss of over Rs100 crore and a negative net worth of Rs 88.70 crore as on March 31, 2002. The closure of the company will render 342 employees jobless.

BIFR, on September 30, ordered that the company M/s Autokast Ltd, be wound up u/s 20 (1) of the Act, following expiry of the two-months time given to the promoters of the company to submit a detailed revival scheme.

Having forwarded the bench's opinion to the Kerala High Court, it directed that the company should not dispose of or alienate its fixed or current assets till an official liquidator was appointed by the high court and he took charge for further disposal according to law.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
BHEL plans more centres of excellence in R&D

Hundred movies in one DVD?

Holcim not to increase open offer price for ACC

Draft concept rules propose strict norms for company names

`New company law will clearly mark areas of jurisdiction'

`Manthan' seminar in Mangalore

`Our businesses have strong inter-linkages'

Hidesign mulls diversification to hospitality sector, IPO

Appeal filed against BIFR order to wind up Autokast

Tata Steel fast-tracking inbound logistics

Ajay Kumar to head Alpha Channels (South)