Friday, August 17, 2012

Revival of British India Corporation Limited and payment of salaries and wages to the employees of British India Corporation Limited
The Union Cabinet today approved a proposal for release of salary and wages and other expenses of the British India Corporation Limited (BIC) pending permissions from Uttar Pradesh Government. The details are as follows:

i) Permission to undertake expenditure for payment of salary, wages, statutory dues and other dues for 2012-13;

ii) Grant of Rs.17.10 crore for introduction of VRS to the surplus workforce of the Company. This would reduce the payment of idle wages;

iii) Repayment of interest free bridge loan of Rs.11.50 crore for payment of interest liability to the State Bank of India. This would unencumber the properties of BIC Ltd. Consequently, the sale of surplus freehold land at Dhariwal could commence at the earliest and the funds realized from the sale can be utilized for revival of the unit of BIC Ltd. at Dhariwal;

iv) Payment of balance conversion charges as may be finally assessed and intimated by the State Government of Uttar Pradesh, after the demand for the balance conversion charges is received. Tentatively, the charges on this count will be Rs.23.19 crore only. Action for conversion of lease hold into freehold has been initiated already and the initial fee for conversion paid.

The Cabinet has granted ex-post facto approval for certain expenditure on conversion charges, salary/wages for the period from April 2011 to March 2012, refund of NTC bridge loan etc.

In June 2011 the Cabinet had given in-principle approval to the revival plan of British India Corporation Ltd. subject to obtaining of requisite approvals from State Government of Uttar Pradesh for sale of land. 

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