Mecl Submits Revival Plan
The Mineral Exploration Corporation Ltd (MECL) has submitted a revival plan to the centre recommending the companys accumulated losses of Rs 49.59 crore be written off as equity and its loans with an interest of Rs 18.64 crore as on 31.3.96 be waivered.
The plan, prepared by an expert committee, has been submitted to the mines ministry, which is expected to forward it to the new cabinet for clearance. The PSU has also requested the government to grant a moratorium on repayment of loan and waiver of interest from 1996-97 for three years.
According to the companys report for the third quarter of 1997-98, (October to December), the centres decision to reduce promotional funding to Rs 2.20 crore would severely affect the companys operations during the year.
The governments decision to reduce promotional funding to the company was contrary to the recommendation of the expert committee, which had suggested promotional funding of one-third of total turnover of the company, about Rs 20 crore per year, for three to five years.
MECL has contended that the proposed Ninth Plan outlay of Rs 15 crore for promotional activity was a meagre amount and most of it would be spent on on-going projects.
MECL also added it needs promotional funding for taking up proved mineral deposit projects.