annual report 1994-95 ministry of power

Babcock & Wilcox of India Ltd (BWIL) located
in Calcutta, which specialises in erection and
commissioning.
ABL ceased functioning following filing of a
winding-up petition before Bombay High
Court by previous management in October,
1986. Under an IDBI/BIFR package, which
were approved by Government, ABL resumed
operations in June 1988, under the
administrative control of Ministry of Power
(Government of India). The Department of
Atomic Energy and Ministry of Power have
extended a long term interest free loan to the
extent of Rs. 13 crores each, totalling to Rs.
26 crores. Financial Institutions led by IDBI
have extended assistance for the revival of the
Company. The State Governments of
Karnataka & West Bengal have extended
concessions regarding collection of Central
Sales Tax from ABL’s Units located in these
states.
(iv) In 1992, the Government of India reiterated
its commitment to the revival of ABL in terms
of the rehabilitation package prepared by
IDBI, retaining the existing structure of the
Company. The rehabilitation process includes
allocation of orders on ABL to optimise
operations of the indigenous Units and also
issuing of guarantees/counter guarantees to
ABL for financial assistance. BIFR accorded
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their sanction to the revised schemes of
Rehabilitation of ABL prepared by IDBI on
15.10.93.
(v) During the year under review, ABL achieved
an all time high Sales turnover of Rs. 204.64
crores with a net profit of Rs. 10.13 crores
which is a matter of great satisfaction. However,
the Order Book position of the Company
has dwindled considerably as no major order
for Power Station, Boiler could be secured
through Govt. of India as envisaged in the
sanctioned Rehabilitation Scheme. Since the
State bank of India also did not increase the
Working Capital requirement of the Company
as per Rehabilitation package, a serious cash
crunch has been caused in the resources of the
company, adversely affecting the current year’s
production and operation results. Efforts are
being made to improve the working results.
Despite the adverse circumstances the
Company is aiming at achieving a still
higher sales turnover of Rs. 220 Crores with a
net profit of Rs. 15 crores during the
current year.
(vi) The proposal of ABB for equity participation in
the ABL has been considered by the BIFR, and
the draft scheme has been publicised by them.
The matter is scheduled for final hearing by
BIFR in March, 1995.