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Workers to draft revival plan for Kanoria Jute

Richa Mishra

NEW DELHI, June 22

THE Board for Industrial and Financial Reconstruction (BIFR) has directed the workers' representative of Kanoria Jute Industries Ltd (KJIL) to formulate a revival scheme in consultation with all concerned and submit a rehabilitation package to IFCI.

IFCI, the operating agency (OA), is to examine the various rehabilitation proposals submitted to them. If these are found viable with means of finance fully tied-up, it will prepare a rehabilitation plan and submit the report to the Board with its specif ic recommendations, a recent order has said.

At the last hearing in November 1999, the Bench said the company and its promoters had failed to comply with the Board's directives given at the September 21, 1994, hearing. However, in order to give those concerned one last chance to revive the unit, th e Bench directed the Government of West Bengal to hold discussions with the workers' union and submit a rehabilitation scheme for the company to IFCI.

Besides, the Bench said that as directed in the September 1994 hearing, a three-member committee, consisting of representatives of IFCI, Bank of India (BoI) and the State Government, would prepare a comprehensive inventory of the fixed and current assets of the company, get them valued by a professional valuer and submit its report.

In case Inland Movers (P) Ltd was interested in submitting a rehabilitation proposal, it could do so provided they deposited Rs. 1 crore in an interest bearing `no lien' account with BoI. The Bench said the existing promoters could also submit a rehabili tation scheme, if they desired, provided they deposited Rs. 1 crore in an interest bearing `no lien' account with BoI, a proposal to which the promoters have consented.

The Bench has directed IFCI to examine the various proposals and submit a report.

Further, the State Government, after taking an extension up to February 15, has expressed its inability to draw up a revival scheme due to lack of infrastructure or specialisation and requested for revised instruction in the matter, the Bench said.