Financial Daily from THE HINDU group of publications
Saturday, Jun 05, 2004
Financial Daily from THE HINDU group of publications Saturday, Jun 05, 2004 |
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Corporate
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Sick Units BIFR likely to clear proposals for Alind rehab Mony K. Mathew
Thiruvananthapuram , June 4 THE long-drawn exercise to rehabilitate the ailing Aluminium Industries Ltd (Alind) appears to be nearing an end with the Board for Industrial and Financial Reconstruction (BIFR) expected to shortly clear the proposals forwarded by the operating agency in respect of the various divisions of the company. The operating agency, State Bank of Travancore, had recommended the sale of the Machinery and Material Handling divisions in Hyderabad as a single unit. A leading business group based in Hyderabad is set to take over the divisions after its proposal was found to be in harmony with the terms, it is learnt. The proposal addresses issues such as statutory dues, employees' dues and one-time settlement of dues to banks and financial institutions. Also, the employees have been assured of continuity in service. The Machinery Division was set up in 1967-68 for the manufacture of wire working machines in collaboration with Miyazaki Iron Works of Japan. Later, the company entered into technical tie-ups with MMC Brondel of France and Takashima Sangyoto of Japan. The Relays Division in Thiruvananthapuram, a profit making unit of the company, is likely to be taken over by a non-resident Indian whose proposal has also been found acceptable by the operating agency. The division, started in 1981-82, is engaged in the manufacture of static relays, control panels, ammunicator and microprocessor-based feeder protection relays. The Switchgear Division at Mannar in Kerala is slated to be taken over by Alind Employees Industrial Co-operative Society. The society was floated by the employees of the division a few years ago with the specific purpose of taking over the division and running it independently. It had put up a proposal a couple of years ago and it didn't go through as the price quoted was below the expectation. The society, according to sources, is now looking up to the Union and State governments for various concessions and reliefs that are necessary to run the unit profitably. In the case of the company's Conductor divisions at Hirakkud in Orissa and at Kundara in Kerala, it is said that no worthwhile offers have been received. In the circumstances, BIFR is likely to consider asset sale of the divisions.
More Stories on : Sick Units | Regulatory Bodies & Rulings | Aluminium
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