The restructuring will make these companies economically viable and sustainable
NEW DELHI: In an attempt to revive the sick units and put them back on rails, the Union Cabinet on Thursday approved the proposal of the Steel Ministry to hand over management control of three sick units to steel major Rashtriya Ispat Nigam Ltd (RINL). It also decided to wind up operations of Karanpura Development Co and Scott and Saxyby.
The five ailing firms — Orissa Mineral Development Corporation (OMDC), Bisra Stone Lime Co (BSLC), Karanpura Development Co (KDCL), Scott & Saxyby (SSL) and Eastern Investments Ltd (EIL) — are popularly known as Bird Group of Companies. The management control of Orissa Mineral Development Corporation, Bisra Stone Lime Co and Eastern Investments would be given to RINL. Briefing newsmen on the outcome of the Cabinet meeting, Information and Broadcasting Minister Ambika Soni said the restructuring proposal envisages vesting management control of the three firms with RINL in a subsidiary-cum-holding structure in order to make these companies economically viable and sustainable. “The government loan and accrued interest thereon would be waived. The commercially unviable companies would be wound up and their employees would be adjusted in other sister companies under the group or would be offered VRS,” she said.
The restructuring proposal includes converting Orissa Mineral Development Corp and BSLC into arms of Eastern Investments. EIL would be made a subsidiary of RINL.