Book English 2011.p65 - Ministry of Textiles

annual report 2010-11ACTION TAKEN BY THE COMPANY/GOI AS PER SANCTIONED SCHEME2008●●●●In the compliance of directions ofCabinet dated 08.08.2008, BIC hasarranged another bridge loan of Rs.10.00 crore (in addition to bridgeloan of Rs. 5.00 crore earlier) fromNTC. A non plan budgetary provisionof Rs. 25.00 crore as loan to BIC Ltd.has been made in the RE-2008-09.Out of Rs. 25.00 crore. Rs. 15.00crore has been released as a loanfor meeting its salary requirementduring 2008-09.Revival scheme after detailed workingwas circulated for Inter Ministerialconsultation.As per Direction of Cabinet actionwas taken regarding inter ministerialconsultation and scheme along withtheir recommendations was sent tothe Cabinet for its approval whereinit was reverted back to get examinedby BRPSE.Accordingly, a revival proposal basedon Techno-Economic Viability (TEV)report of Wool Research Association(WRA) & Industrial FinanceCorporation of India (IFCI) has beenapproved by BRPSE in its meetingheld on 28.07.2010. Draft Note forthe Cabinet has been prepared andinter-Ministerial consultation is underprogress.SUBSIDIARIES OF BIC LIMITED I.E.ELGIN MILLS COMPANY LIMITED,CAWNPORE TEXTILE MILLS LTD. ANDBRUSHWARE LIMITEDELGIN MILLS LIMITEDThe Elgin Mills Company Limited wasestablished in the year 1864 and it wasregistered in the year 1911 comprising 2Units as Elgin No. 1 & Elgin No. 2. By anordinance called the British IndiaCorporation Limited (Acquisition of shares)Act 1981 the GOI acquired all shares ofBIC Limited and thus became aGovernment company from 11th June1981. The Elgin Mills Co. being subsidiaryof Govt. Co. acquired the status of Govt.Company. Due to continuous losses, thecompany was declared sick by BIFR onNovember 3, 1992.Considering the need to protect the textilesindustry in Kanpur city where all thetextiles mills in the public sector havebeen closed down, Government hadapproved the proposal for the revival ofElgin Mill No.1 at a total cost of Rs 95.58Cr, provided a suitable private party waswilling to become a majority shareholder.The High Court was requested to remandthe case to BIFR. AAIFR, on 14.11.2005,remanded the case to BIFR with directionsthat the Company, the Government ofIndia in the Ministry of Textiles, and theoperating agency, namely IDBI, shouldformulate a draft rehabilitation schemeand place it before BIFR within 90 daysfrom the date of this order. A DraftRehabilitation Scheme was filed by IDBIon 23rd June, 2006 before BIFR forapproval. The BIFR had issued directionson 10.08.2006 to the (Operating Agency)OA for taking necessary steps for changeof management, issue of necessaryadvertisement in this regard.In the light of judgment of Hon'ble SupremeCourt in the case of Centre for PublicInterest Litigation V/s UOI & another, theearlier decision of the Govt. to reviveElgin Mills through private partner withmajority shareholding was under review.Besides, an appeal was also filed by theCompany before BIFR to review its orderdated 10.08.2006 regarding change ofmanagement of the Company. BIFR in itshearing dated 13.3.2007 has deregisteredthe reference filed by the Company underSICA.185