march 6, 1995

Workers to take over XLO Machine

The employees of XLO Machine Tools are set to take over the company based at Thane. If all goes according to plan, the unit, which closed operations in October 1993, will re-start again in April. About 400 workers will find themselves re-employed. The unit, with a net loss of Rs. 1 6.68 crores, was declared sick by the BIFR which approved the revival scheme formulated by the employees in October 1994. According to Mr. Hasmukh Barot, Chairman of XLO Machine Tools Employees’ Industrial Co-operative Society Ltd., the approval by the BIFR is the first under Section 72 of the Sick Industrial Companies Act. 1985. “All the parties concerned agreed to the takeover, including the management .” The Rs. 220-lakh revival scheme hopes to turn around the company by 2000. Workers have contributed Rs. 60 lakhs towards equity, while the State Government and the IDBI have chipped in with Rs. 80 lakh each. According to the projection made by the IDBI, it will achieve a profit of Rs. 1 1 lakh in its second year of operation. Losses would be cleared by the year 2004.

Land acquisition: SC lays down norm

The Supreme Court, in a significant decision, has laid down the principle of evaluation in cases of land acquisition by the Government for industrial and other projects. Should the State pay extra compensation for the fruit trees standing on a piece of land in the event of compulsory acquisition? No, according to the Supreme Court verdict in a dispute involving compensation payable for a land acquired by the Haryana Government. In this case, the land acquisition collector fixed a basic value for the land and in addition, awarded compensation for the fruit-bearing trees on the land.

comment COMMENT NOW