chapter viii wool & wollen textiles industry - Ministry of Textiles

ministry of textiles
EMPLOYMENT
Manpower as on 30 th Sept. 2011
CWM BRANCH - 1073
NEWM BRANCH - 869
CORPORATE OFFICE - 77
TOTAL BIC - 2019
Highlights of Rehabilitation Scheme
approved by BIFR/GOI in the year 2002.
The revival scheme, approved by BIFR in
the year 2002, was to be implemented in
2 years i.e. by the end of March 2005 for
BIC Limited.
SALIENT FEATURE OF THE
SCHEME
The Company received the financial
support from GOI of Rs. 86.00 crores out
of which Rs.37.00 crores as interest free
loan and Rs. 49.00 crores as grant. Rs.
125 crores were to be generated from sale
of surplus assets. Both the units had to be
modernized by an investment of Rs.46.00
crores by purchase of new machines and
renovation of old existing machines.
REASON FOR DELAY IN
IMPLEMENTATION OF SANCTIONED
SCHEME
The company had to repay the OTS
amount of financial institutions / banks
amounting to Rs.4.52 crores / Rs. 87.75
crores from sale proceeds of surplus
land. The sale of surplus land started at
Kanpur and Dhariwal. Some properties
were sold, whereas in case of other
properties 25% advance money was
received and 75% was to be received on
handing over possession on execution
of sale. U.P. State Government did not
permit to convert leasehold property into
freehold property. In such circumstances
BIC Limited could not make the payment
of SBI OTS amount in full in time nor
could generate the funds for working
capital. Presently full amount of OTS
of Banks & FI’s has been paid except
interest of SBI levelled on delayed
payment as stipulated in the SS-02 i.e.
Rs. 11.54 crore.
ACTION TAKEN BY THE COMPANY
SO FAR
- The company has allowed VRS to
the employees 535 nos. identified
as surplus and the expenditure of
Rs.17.50 crores incurred thereon.
- BIC Limited has invested in the
modernization/renovation Rs.17.50
crores.
- BIC Limited released the funds
Rs.92.25 crore from sale of assets
amount upto March 2009.
- BIC Limited made the entire
payment of SBI amounting to
Rs.87.75 crores against OTS
amount upto March, 2009.
- BIC Limited made full payment of
Financial Institutions (OTS amount)
Rs. 4.52 crores.
- BIC Limited prepared and got
approved a Modified Draft
Rehabilitation Scheme from BIFR in
its meeting held on 14-02-2008.
- The revised scheme was prepared
duly consulted with WRA & IFCI as
per Direction of MOT for examination
in BRPSE costing Rs. 313.90. This
scheme was approved by BRPSE
in its meeting held on 28-07-10 with
the stipulation that the figure may be
updated to 31-03-11. Accordingly the
same was updated. (Table 12.7&12.8).
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