Bengal Reviews Stand On Jessop

The West Bengal government has reviewed its stand on Jessop & Co's new promoter providing a bank guarantee of Rs 38 crore and has agreed to secure the amount through an appropriate bond executed before the registrar of companies with a charge on Jessop's fixed assets.

The state government has added another rider that it requires the Centre's confirmation towards the loan's repayment, through a counter signature as a "confirming party". The state government has also said on dilution of the central government's stake it can revert to its previous demand of a bank guarantee.

The state government is also insisting that the Centre should give it a six-month notice before diluting its stake. The government has sent its proposals to BIFR.