Pdil Seeks Okay To Defer Interest Payment

The ailing Projects and Development India Ltd (PDIL) has asked the finance ministry for a moratorium on repayment of interest on the Rs 40 crore loan until the corporation's net worth becomes positive. The interest burden on PDIL is also around Rs 40 crore.

It has also complained to the commerce ministry against certain multinationals for violating anti-dumping norms.

Certain multinationals have been dumping catalyst at one-third of its price, chairman and managing director of PDIL O N Kapur told Business Standard.

Kapur attributed the losses incurred by PDIL to dumping activities by the multinationals. He said PDIL was forced to match their prices which was unremunerative to the public sector undertaking.

 

Among the multinationals which have been accused of dumping include, Topsoe and ICI Catalco.

He said PDIL had submitted a recast plan to the finance ministry which had sought complete revival of the organisation. We have sought revival of the research and development and catalyst divisions, he said.

Kapur, however, clarified that PDIL did not require fresh induction of funds but wanted an interest holiday until its net worth becomes positive.

PDIL was referred to the Board for Industrial and Financial Reconstruction (BIFR) in 1992 and was declared a sick company on December 17, 1992.

The initial report prepared by Industrial Credit and Investment Corporation of India (ICICI) was accepted.

The revival package included rehabilitation of all the three divisions of the company.

ICICI was also asked to get an independent assessment made of the divisionwise manpower requirement of the company. This work was entrusted to National Productivity Council.

The package was again recast as per the specific guidelines in consultation with the Union and state governments and PDIL employees and was then submitted to the Board for Industrial and Financial Reconstruction. After it was cleared, the report was sent to the finance ministry for approval.

PDIL, which was a subsidiary of Fertiliser Corporation of India, was formed into a separate company in March 1978.

For 1995-96, the company has declared a net profit of Rs 4.19 crore against a net loss of Rs 12.93 crore during 1993-94.

Regarding its voluntary retirement scheme, Kapur said applications of 350 out of 500 personnel who had applied for the scheme, had been accepted. An amount of Rs 60 crore has been earmarked for the VRS.

PDIL, which also provides consultancy service, recently won a contract to provide project management consultancy service in association with EIL Asia Pacific for the fertiliser project of Petroleum National Barhad of Malaysia (Petronas).

It is involved in the execution of Vijaipur expansion project for National Fertiliser Ltd and Aonla expansion project for Indian Farmers Fertiliser Cooperative Limited.