Gddc Directed To Work Out Revival Plan

The Board for Industrial and Financial Reconstructionhas directed the Gujarat Dairy Development Corporation (GDDC), a sick public sector unit, and the Gujarat government to reach an agreement with the workers on reducing the work force. A National Dairy Development Board (NDDB) study had said only 250 of the total 1600 GDDC workers were required.

The rest were to be offered a voluntary retirement scheme, the study felt. The BIFR, in a recent hearing, said the state government and the company should discuss the labour pruning in depth with the workers and arrive at an arrangement acceptable to all.

The board said, under the provisions of Section 18 (3) of the Sick Industrial Companies Act (Sica) with regulation 29 of BIFR regulations 1987, the All Gujarat Employees Association will be heard at the time of preparing the draft rehabilitation scheme.

 

The Gujarat HC had directed the BIFR to consider whether the association should be allowed as a party to the board hearings.

The board also directed GDDC to work out a definite time frame for pumping in funds to revive itself. The public sector unit should also ensure that the sale of surplus assets, identified at Ahmedabad, was complete within the set period.

If this is not possible, the BIFR bench, comprising M S Shrivastava and Ashim Chatterjee, said the government should induct the required funds so that the scheme implementation was not affected.

As on March 31, 1997, the company's net value was a negative Rs 39 crore as its accumulated losses went up to Rs 59 crore against the equity and reserves of Rs 20 crore.