The Union Cabinet has approved a revival plan for British India Corporation. It has given permission for release of salary and wages and other expenses for the 2012-13 period (pending approvals from the Uttar Pradesh Government).
Under this, a grant of Rs 17.10 crore has been given for introduction of VRS to the surplus workforce of the company to reduce the payment of idle wages. Also, repayment of interest-free bridge loan of Rs 11.50 crore for interest liability to the State Bank of India has been approved.
“This would unencumber the properties of BIC. Consequently, the sale of surplus freehold land at Dhariwal could commence at the earliest and the funds realised from the sale can be utilised for revival of the unit of BIC at Dhariwal,” an official statement said.
It added that the payment of balance conversion charges as may be finally assessed and intimated by the Government of Uttar Pradesh, after the demand for the balance conversion charges is received. Tentatively, the charges on this count will be Rs 23.19 crore only. Action for conversion of lease hold into freehold has been initiated already and the initial fee for conversion paid.
The Cabinet has also granted ex-post facto approval for certain expenditure on conversion charges, salary/wages for the period from April 2011 to March 2012, refund of NTC bridge loan, etc.
In June 2011, the Cabinet had given in-principle approval to the revival plan of British India Corporation.
TCIL project gets nod
In a separate decision, the Cabinet has also approved the proposal of the Department of Telecommunications regarding formation of fully owned special purpose vehicle for execution of Lakhnadone-Ghansore road project.
The project will be executed on build, operate and transfer (BOT) basis by investing in equity up to 35 per cent of the project cost, i.e., Rs 23.11 crore from Telecommunications Consultants India’s (TCIL) internal resources.
TCIL, a telecommunications consultancy and engineering company, was incorporated in 1978 by the Government of India.