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TN Industrial Explosives comes out of BIFR net

Richa Mishra

NEW DELHI, Nov. 2

THE Board for Industrial & Financial Reconstruction (BIFR) has discharged Tamil Nadu Industrial Explosives Ltd (TIEL) from the purview of the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA).

At the recent hearing, the Bench found that the networth of the company had turned positive based on its annual accounts as on March 31, 2001.

Further, Industrial Development Bank of India (IDBI), the monitoring agency (MA), submitted that it had no objection if the company was discharged from the purview of the BIFR as it had met all its financial obligations, the Bench noted.

However, the unfulfilled obligations, if any, under the approved package, would continue to remain in force for the unexpired period and should be discharged by all concerned accordingly, the Bench said.

The Bench recalled that a rehabilitation scheme was sanctioned by the board in May 1999. At the recent hearing, IDBI submitted that the company had complied with all the directions for compliance on their part.

TIEL has also gone in for collaboration with a MNC based in the US and some Government approvals were needed to complete the modalities. The company had given an assurance that it would be getting the clearance from the Government in a months time, IDBI said.

Further, TIEL had also paid all the institutions and banks and had no statutory liabilities whatsoever in terms of the sanctioned scheme, IDBI submitted.

Mr L.K. Tripathy, Chairman and Managing Director, TIEL, submitted that since the networth of the company had turned positive as on March 31, 2001 and had no statutory dues pending for payment, the company should be discharged from the purview of BIFR as it was no longer a sick industrial company.