The Hindu Business Line : Bengal seeks BIFR intervention in Metal Box rehabilitation issue

THE West Bengal Government has taken up with the Board for Industrial and Financial Reconstruction (BIFR) the issue of the non-implementation of Metal Box India Ltd's (MBIL) updated rehabilitation scheme, particularly in respect of the company's units located in the State.

In a letter to the BIFR, the State Industrial Reconstruction Department has said that four years have elapsed since the updating of the AAIFR-sanctioned modified revival scheme for MBIL's units in the State but the management is yet to initiate the revival process in compliance with the Delhi High Court/AAIFR and as envisaged in the modified scheme.

A scheme for rehabilitation of MBIL covering all units located in different parts of the country was originally prepared by ICICI Ltd, which was the Operating Agency appointed by BIFR.

The scheme was subsequently updated, finalised, and sanctioned by AAIFR as per its order dated August 18, 2000 following a Delhi High Court order.

According to the AAIFR-sanctioned rehabilitation scheme, the MBIL management was to put in interest-free fund of Rs 30 crore into the company in phases - Rs 3 crore in the first month of the commencement of the implementation of the scheme and the rest in six monthly instalments.

The management was also to clear in phases the past dues to its employees including statutory payments aggregating Rs 15 crore.

The company was also to work out a VRS for the employees on the rolls. As envisaged in the rehabilitation scheme, the management was resume operation in the Unit No. 1 and close down Unit No. 2 and the Project Division, all three located in Kolkata.

The West Bengal Government said that despite its offer of relief and concessions as admissible under its policy guidelines including grant of a soft loan of Rs 5 crore, there has been no sincere effort on the part of the management to initiate measures as outlined in the rehabilitation package.

The State Government also urged ICICI to submit a status report on the functioning of the Asset Sales Committee for the company as a whole and the outcome of the decisions of disposal of surplus assets and the corpus funds generated from the disposal of surplus assets of MBIL in other states also. However, ICICI did not come forward with any such report.

Under the circumstances, the State Industrial Reconstruction Department said, it has no other alternative but to appeal to the Chairman of BIFR to intervene in the matter at the earliest.

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