• PAGE ONE
• INDEX
• HOME

IFCI told to modify revival plan for S. India Cements

Richa Mishra

NEW DELHI, July 1

IFCI has been directed by the Board for Industrial and Financial Reconstruction (BIFR) to incorporate the amendments suggested in the modified draft rehabilitation scheme for South India Cements Ltd (SICL) and submit to the board.

A rehabilitation scheme of SICL was sanctioned in 1995. The instant hearing was held to consider, inter alia, the implementation of the scheme and compliance of the directions of the last review hearing.

IFCI, the monitoring agency (MA), at the recent hearing, submitted that in the last hearing, the Bench had directed the company to submit its modified proposal.

The company was also directed to seek agreement with the parties concerned to various reliefs and concessions sought in the modified proposal and to include the agreed position in it.

Accordingly, the company had submitted a revival proposal vide its letter dated November 20, 2000 based on the one-time settlement (OTS) of the dues of the financial institutions and banks. The proposal was considered at a joint meeting convened on May 1 6, 2001 when the FIs and the banks agreed, in principle, to various reliefs and concessions with minor modifications.

However, the approval from their competent authorities was yet to come. The IFCI had also agreed subject to preponing of the date of payment of interest at PLR on the OTS amount from January 1, 2001 to November 7, 2000, it said.

It further submitted that the dispute between Karnataka Power Transmission Corporation Ltd (KPTCL) and the company has also been settled. KPTCL had also waived the minimum demand charges during the closure period, IFCI said.

As regards financing of the cost of the scheme totalling Rs 6.94 crore, the same was to be financed from the internal accruals of the company and no contribution was envisaged from the promoters, it submitted. The promoters were, however, arranging funds from their own sources for working capital requirements of the company, IFCI said.

The Bench directed the Karnataka Government to examine the modified DRS in the light of its present policy and convey its views to the board, MA and secured creditors. It also directed that the dues of Central Excise Department of Rs 35.67 lakh be includ ed as contingent liability in the modified DRS in view of these dues being under adjudication.