Cabinet approves financial restructuring of BBUNL
The government on Thursday said it is transferring the sick units of Bharat Bhari Udyog Nigam Ltd (BBUNL) to the the Railways and the Steel Authority of India as part of a financial restructuring.business Updated: Jun 10, 2010 17:10 IST
The government on Thursday said it is transferring the sick units of Bharat Bhari Udyog Nigam Ltd (BBUNL) to the the Railways and the Steel Authority of India as part of a financial restructuring.
It said loans would be provided to these units to get them up and running.
The administrative control of BBUNL subsidiaries -- Burn Standard Company Ltd (BSCL) and Braithwaite & Co Ltd -- will be transferred to the Steel Authority of India (SAIL) along with a refractory unit at Salem, Tamil Nadu, the government said after the cabinet meeting.
Another subsidiary Braithwaite, Burn and Jessop Construction Co. Ltd will be merged with BBUNL.
The Railways will get control of wagon-making companies of Burn Standard and Braithwaite & Co and make these financially viable again.
"This involves an expenditure of Rs 1,139.16 crore as non-financial assistance by waiving off Government of India's loan and interest to Burn Standard Company and financial assistance of Rs 14.15 crore to the Burn Standard Company," an official statement said.
"Upon transfer to SAIL, the Salem refractory unit of Burn Standard Company unit will have access to funds for modernization and capacity expansion," said the statement.
"Burn Standard has 1418 employees and Braithwaite and Co has 459 employees. Improvement of the financial performance of these companies will improve the compensation to the workmen and contribute to development of the areas where these units are located in West Bengal and Tamil Nadu," the statement said.
Both the states are going to the polls next year.