IN VIEW of the delay caused by the state government in giving free hold of excess land to the British India Corporation Limited (BICL), the ongoing revival efforts of the corporation are likely to get affected which might lead to its closure.
A major portion of financial assistance planned under the Modified Draft Revival Scheme (MDRS) depends upon the sale of excess land and for that the land has to be made free hold.
A recent meeting of the state chief secretary, representative of the BICL and Union Ministry of Textile (MOT) failed to decide on the terms and conditions for converting lease hold land of BICL to free hold.
The pressure on the BICL management had increased after the Board for Industrial and Financial Reconstruction (BIFR) issued a show cause notice last month. Since then, the BICL management had increased its efforts to save closure of the company.
They are trying their best to get free hold of land with maximum rebate. The meeting with state chief secretary was the outcome of the same efforts said sources.
The sources said that assets sale had become must for the corporation in absence of other alternative for required financial assistance.
{{/usCountry}}The sources said that assets sale had become must for the corporation in absence of other alternative for required financial assistance.
{{/usCountry}}The central government had already released full amount worth Rs 87 crore against the revival plan.
Therefore, the management was left with no other option than to sell the excess land to arrange additional amount worth Rs 160 core for the revival.
Talking to Hindustan Times senior manager (legal) RK Mishra of the BICL said that delay caused by the state government might cause financial crunch in the corporation. He said that state authorities were avoiding giving free hold of the land due to incomplete details.
Additional District Magistrate (finance) Udai Veer Singh said that the BICL management had failed to give proper details about their after sale investments.
They have also not given exact details about the rebate required.
When asked why the state government was not permitting the conversion of the land from year 1998, Singh said, as per rules, free hold was possible only from the date of application.
Singh said the BICL has been asked to submit proper details so that it could be sent for consideration of the Cabinet.
The president of the BIC Officers Association Aditya Nath Bajpai said that state government should consider the corporation’s request on priority so that the world famous woollen mill ‘Lal Imli’ could be saved.