The Hindu Business Line : BIFR scheme for rehabilitation of Alind Relays

THE Board for Industrial and Financial Reconstruction (BIFR) has prepared a draft rehabilitation scheme for the revival of the Relays division of the ailing Aluminium Industries Ltd (Alind).

The scheme has been worked out in the wake of a take-over proposal received by the State Bank of Travancore, the operating agency, for the relays division, which is an operating unit.

The scheme envisages the revival of the division at a total cost of Rs 237.34 lakh, comprising Rs 150 lakh as one-time settlement of dues to creditor banks and financial institutions, Rs 20 lakh of capital investment, Rs 10 lakh as start-up costs, Rs 30 lakh as investment in research and development and Rs 27.34 lakh as working capital.

The scheme is proposed to be financed by an equity of Rs 130 lakh and a promoter's loan of Rs 107.34 lakh. It also seeks relief and concessions from banks, financial institutions, the State Government and unsecured creditors.

Alind was established in 1946 at Kundara in Kerala. The company expanded its products range by setting up various divisions in Andhra Pradesh and Orissa, apart from Kerala. It, however, was declared sick in 1987.

After a couple of rehabilitation proposals failed to take off, BIFR finally issued orders in November 2003 featuring revival packages for the company's three operating divisions, including relays, and the sale of assets of the remaining closed divisions.

The operating agency also received a proposal for take-over of the switchgear division at Mannar, Kerala, by Alind Employees Industrial Co-operative Society. The society was floated by the employees of the division a couple of years ago.

The relays division became operational in 1981-82 for the manufacture of static relays with the technical collaboration of Delle Alsthom of France. It was the first company in the country to introduce a range of static relays.

Later, Alind indigenously developed other static and microprocessor-based relays and ammunicators suitable for the Railways and the State electricity boards. Other products include control panels and feeder protection relays.

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