Pal Proposal For Rs 50cr Secured Ncds Gets Nod

The AGM was held amidst tight security to pre-empt any disruption by the Datta Samant led union.

The shareholders also took into consideration the companys decision to drop the $50-million global depositary receipts (GDR) issue and the proposal to issue non-voting shares.

The board of directors had earlier moved two enabling proposals in this context. The Rs 50-crore secured non-convertible debentures is for part-financing the expansion and modernisation of the companys Kurla plant.

Answering queries regarding the companys plan to raise the necessary funds for the expansion programme, Maitreya V Doshi, managing director, said that the total Rs 275 crore would be generated by way of equity issue, debt and through internal generation.

PAL has envisaged a capital expenditure programme of Rs 275 crore over a period of three years which will include the setting up of a new paint shop, apart from expanding the capacity for production of Uno cars. The companys plan to manufacture Palio, the world car parallel to Uno, is still at the preliminary stage, he said.

Commenting on the current labour unrest and the lockout at the Kurla plant, chairman Vinod L Doshi told shareholders that the management is not anti-labour and believes in dignity of labour. But the workers demand should be rational.

This time there is no logic behind their agitation and hence it should be stopped. The management is willing to talk to workers anytime but is against the unions leadership (Datta Samant).

The unions leadership is not acceptable to the management because of the approach it has taken this time, the chairman added.