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Metal Box revival plan hits another roadblock

Our Bureau

KOLKATA, July 31

THE revival of Metal Box India Ltd, it appears, has again hit a roadblock, causing disillusionment among employees and others.

The hope of revival had brightened with the Maharashtra Government clearing the sale of the company's Worli property in Mumbai, measuring 178,136 sq metres.

The State Industry Department, in an order dated April 4, 2001, conveyed the State Government's no-objection to the shifting of the company's Worli factory to non-urban areas in the State, thus paving the way for the sale of the property.

The Mumbai Municipal Corporation too had earlier granted permission to the company for commercial use of the property.

It might be recalled that the sale of the Worli property has been hanging fire for a long time in view of the non-availability of the necessary clearances from the authorities concerned in the State Government.

Now, a fresh round of problems have clouded revival prospects. Several State Governments, on learning that the last hurdle to Metal Box rehabilitation has been overcome, have started placing their demands with the company for early clearance of their due s, mainly sales tax.

For example, the West Bengal Government's Department of Commercial Tax alone, it is learnt, has estimated its dues at Rs 71 crore -- Rs 19.9 crore the principal amount and the balance interest burden-- and lodged with the company its demand for an early release of the amount.

Similarly, the Assistant Commissioner of Commercial Tax of the Tamil Nadu Government is understood to have placed a demand running into several crores.

Among other agencies which are keen to have their dues settled include among others, the Customs in Mumbai, Calcutta Municipal Corporation and Calcutta Port Trust.

If all the dues are taken into account, the Rs 108-crores rehabilitation package, as prepared by the management and cleared by the appropriate authorities, will be rendered infructuous, it is felt.

Meanwhile, a four-member committee comprising representatives of ANZ Grindlays Bank, the Board for Industrial and Financial Reconstruction (BIFR), ICICI and the company management is going into the issue of the valuation of the Worli property. It might b e recalled that there have been several rounds of valuations of the Worli property in the past.

First, it was by BIFR which valued the property at Rs 91.5 crore on the basis of the estimates of the Income-Tax authorities, then by the Appellate Authority on Industrial and Financial Reconstruction (AAIFR) which fixed the valuation at Rs 96 crore.

Subsequently, ICICI, the operating agency, at the insistence of the company management that there was a need for a fresh valuation in view of the slump in real estate market in Mumbai, appointed HDFC and Batliboi & Co to undertake valuation of the proper ty. HDFC valued the property at Rs 64 crore while Batliboi & Co did so at Rs 43 crore.