chapter viii wool & wollen textiles industry - Ministry of Textiles

ministry of textiles
Cabinet directed that MRS be examined
by BRPSE. The revised scheme duly
consulted with WRA & IFCI was furnished
to MOT who in turn put up the scheme
to BRPSE for their consideration. The
BRPSE in its meeting held on 28.07.2010
approved the MRS costing Rs. 313.90
crore with the observation that figures
may be updated 31.03.2011.
Ministry of Textiles, Government of
India had submitted Cabinet Note dated
20.05.2011 for revival of The British India
Corporation Ltd. with the cost of scheme
amounting to Rs. 338.04 crores.
The Cabinet vide its meeting held on
09th June, 2011 approved the Revival
Proposal. The Extract of the Minutes of
the Meeting is given below:-
“The Cabinet considered the note dated
20.05.2011 from the Ministry of Textiles
(Vastra Mantralaya) and accorded ‘in
principle’ approval to the proposals
contained in paragraph 7 thereof subject
to the condition that permission is first
obtained for sale of the surplus land from
the Government of Uttar Pradesh.”
The implementation of the scheme will
start as soon as NOC is obtained from
Government of Uttar Pradesh for sale of
the surplus land and required formalities
with BIFR are completed. Govt. of UP
has now issued GO dated 28.09.2011
permitting conversion of leasehold to
freehold.
BIC Ltd. has three subsidiaries viz. Elgin
Mills Co. Ltd., Kanpur, Cawnpore Textiles
Ltd., Kanpur and Brushware Ltd., Kanpur.
The Revival Plan for Elgin Mills Co. Ltd.
has been approved. NITRA has prepared
a revival scheme for Cawnpore Textiles
also which has been submitted to MOT
for their approval.
To clear up the balance sheets of Elgin
Mills Co. Ltd. and Cawnpore Textiles Ltd.,
OTS settlements with various bankers
had been entered into settlements with
Kotak Mahindra Bank, IDBI and PNB
have been successfully concluded with
IFCI remaining which is sub-judice before
DRT/High Court, Allahabad. Similarly
for Elgin Mills Co. Ltd., OTS settlement
successfully concluded with IDBI, SCB,
PNB, BOB, CCI. Conditions finalized
with Canara Bank and IIBI. The issue of
Kotak Mahindra Bank and IFCI is subjudice.
The OTS settlements have been arranged
through loans from NTC.
CAPITAL STRUCTURE
The BIC Limited started with Authorized
Share Capital of Rs. 55.00 crores. It
stands as on date Rs. 304.62 crores
after converting Government loan of Rs.
249.62 crores into equity derated to 10%
as per direction of BIFR.
CAPACITY
The capacity of the two Woollen Mills of
BIC after modernization as sanctioned by
BIFR/BRPSE is 20680 Worsted Spindles,
1920 Woollen Spindles, 79 Power Looms
and 62 Handlooms.
PERFORMANCE DURING 2009-10
(AUDITED), 2010-11 (PROVISIONAL)
2011-12 (UPTO JAN.,12) AND 2011-
12 (PROJECTED).
FINANCIAL RESULTS
The net profit/cash loss for the year
2009-10 (Audited), 2010-11 (Provisional),
2011-12 (upto Jan.,12) and 2011-12
(PROJECTED) of BIC Limited are given
at table 12.4.
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