The Hindu : Revival package for ISSCO

Online edition of India's National Newspaper
Friday, Jul 05, 2002

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Revival package for ISSCO

By Our Staff Reporter

KOLKATA. JULY 4. The Centre has prepared a Rs. 881 crore revival scheme for Indian Iron and Steel Company (IISCO).

Of the total, Rs. 540 crores will be used for separating roughly five to six thousand employees through VRS and the balance Rs. 341 crores for revamping the plant and machinery.

Talking to newspersons here today, the Union Minister for Steel, Braja Kishore Tripathy, said the revival scheme to be submitted to the Board for Industrial and Financial Reconstruction (BIFR) by July 7, included waiver of sales tax and electricity charges worth Rs. 350 crores by the West Bengal Government. The latter though agreed in principle was yet to give its formal nod to the revival scheme.

Describing the revival plan as an interim measure to save IISCO from immediate liquidation, he said the earlier negotiation with TPE of Russia was still on.

"Since the BIFR has already set a deadline we did not waste time.'' Mr. Tripathy was here in connection with the steel consumers council meeting.

Earlier, addressing the consumers, the Union Steel Secretary, N. N. Khanna, said the industry had been experiencing an uptrend in demand and prices since the last quarter of the last fiscal with steady growth since February.

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