core sector communique

Restructuring of Bird Group of Companies under Ministry of Steel

The Union Cabinet today approved the proposal for modification of the `grant-in-aid` instead of `waiver` of income tax liability arising due to restructuring of Bisra Stone Lime Company Limited (BSLC) under Bird Group of Companies. Fulfillment of statutory requirement for payment of income tax arisen due to waiver of interest on Government loan and conversion of principal amount of Government loan into equity of the company. There will not be any net liability on the part of the Government of India on account of discharging the income tax liabilities of the BSLC arising out of the waiver of Government loan and interest thereon as the amount will be deposited in the Government account immediately and within the same financial year. Grant-in-aid to waive the income tax liability will help BSLC to fulfill the statutory requirement of Income Tax Department. Background: The Cabinet in its meeting held in September, 2009 approved the restructuring proposal of Bird Group of Companies under Ministry of Steel. All the decisions of the Cabinet regarding restructuring of Bird Group of Companies have since been implemented, except the decision regarding waiver of income tax likely to arise due to restructuring of Bisra Stone Lime Company Ltd. (BSLC) under the Bird Group of Companies.