Hearing On Metal Box Worli Premises Next Week

The sale of the Worli works, which would fetch the ailing company Rs 91.54 crore, is part of the Rs 140-crore rehabilitation package approved by the Board for Industrial & Financial Reconstruction in June this year. The valuation was done by the Income Tax (Recovery) Department.

But the Maharashtra government's decision to not give permission for the sale of the property at Worli has put the company into deep trouble, in which the NRI Vinod Krishna holds majority stake. He will also pump in Rs 25 crore as promoter's contribution for the rehabilitation of the company.

The company operations have been suspended for over nine years and the suicide toll of workers have gone up to 123. The unit at Worli is one of the three units of the company which is currently operational and produces tin cans.

 

As per the rehabilitation package, the Worli plant, after the sale of the property, is to be relocated outside Mumbai at a cost of Rs five crore. The two other units in which production is going on are the Mahoum works in Mumbai, for manufacturing paper cans, and the Mangalore unit which produces tin cans.

Its Calcutta I, Madras, Faridabad and Deonar units, which are closed at present will be reopened according to the BIFR-approved package. The company's three other units, Calcutta II, Cochin Metals and the Kandla unit, are also for sale.