Braithwaite Asked To Submit Modified Revival Scheme
The Board for Industrial and Financial Reconstruction (BIFR) has directed the management of public sector Braithwaite and Company Ltd (BCL) to submit a modified revival scheme incorporating the proposal to transfer one unit to its subsidiary, Burn Standard Company.
The board has directed monitoring agency, Rail India Technical and Economic Services (RITES) to examine the modified proposal keeping in view the stand of the government and up-to-date performance of the company.
It has also asked the government to convey its preliminary views on the report of Rail India Technical and Economic Services which was engaged by the company for conducting technical study of the proposed changes in the product-mix and the capital expenditure programme.
Rail India Technical and Economic Services has submitted the detailed report which is being considered by the government and their views are still awaited.
The representatives of the monitoring agency had stated before the board that the government had agreed for most of the reliefs covered under the sanctioned scheme but the company did not submit any modified proposal on account of which they could prepare the scheme as directed by the Board for Industrial and Financial Reconstruction (BIFR).
The monitoring agency said during the hearing that inspite of the government meeting most of its commitments under the scheme, the reliefs from the West Bengal government and State Bank of India (SBI) had not been extended so far and company was suffering on account of shortage of working capital.
State Bank of India representatives, however, mentioned they had already released finance upto the maximum level for which the government guarantee was made available.
The bench noted that the monitoring agencys statement regarding working capital was not correct.
The company submitted that despite repeated visits, it was not getting the required response and even the in-principle sanction for the reliefs was not issued by the West Bengal government.
Since Braithwaite and Company was at the verge of a revival, the state government was expected to make necessary action to ensure that the new scheme would proceed smoothly, the bench observed.
The bench asked the company to follow up the matter at appropriate level.
The Board for Industrial and Financial Reconstruction also directed the company to sort out all the relevant issues with the labour unions and to bring out the worker-supervisor ratio in line with the industry norms.