CCD okays asset sale of two co-op units

The Cabinet Committee on Disinvestment (CCD) chaired by the chief minister Naveen Patnaik today approved the asset sale of two co-operative spinning mills in the state. These two spinning units are Gopinath Weavers’ Spinning Co-operative Mill (GOPISPIN) located at Baliapal and KALICOSPIN located in Dhenkanal.

Sources said, two bidders had evinced interest for GOPISPIN located at Baliapal. It will be sold to Rohatiya Spinning at a price of Rs 2.44 crore. Though initially the assets were valued at Rs 2.51 crore, it was reduced to Rs 2.44 crore after the mill was damaged by a fire accident.

Similarly, KALICOSPIN, Dhenkanal, will be sold to Oriental Agencies. The company quoted the highest price of Rs 6.16 crore among four bidders including Hindusthan Pulverising.

Sources said, the CCD deferred any final decision on the future of Hirakud Industrial Works (HIW) as the matter is sub-judice.

The recommendation of the Public and Co-operative Enterprises Restructuring Committee (PCERC) pertaining to the Hirakud Industrial Works (HIW) and Idcol Rolling Mill was placed before the CCD for consideration. It was decided, the employees of HIW and Idcol Rolling Mill will be given voluntary retirement if they agree to it.

The chairman cum managing director (CMD) of the Industrial Development Corporation of Orissa Ltd (Idcol) has been entrusted with the responsibility of holding talks with the employees on the matter.

Both the units were earlier privatised and the Sale and Purchase Agreement (SPA ) was signed by the state owned Idcol with Kolkata based Varsha Fabrics Private Ltd. (VFPL) on 10 July 2006.

In a high level meeting chaired by the chief secretary Ajit Kumar Tripathy recently, it was agreed to consider the applicability of the VRS/VSS to the existing employees with payment of their other dues on a priority basis.

Rough estimates put the total pending dues of about 300 employees including the VRS/VSS benefit at about Rs 16 crore excluding the interest on provident fund.

This amount may be arranged jointly by Idcol and the public enterprises department and will be claimed from existing owner of the units, VFPL or prospective owners through court order, sources added. It may be noted, subsequent to the CCD’s decision on 15 January 2009, Idcol moved the Orissa High Court for cancellation of the Sale and Purchase Agreement (SPA) signed with VFPL.