Cabinet approves financial restructuring of BBUNL
June 10th, 2010 - 5:28 pm ICT by IANSNew Delhi, June 10 (IANS) The government Thursday said it is transferring the sick units of Bharat Bhari Udyog Nigam Ltd (BBUNL) to the the Railways and the Steel Authority of India as part of a financial restructuring.
It said loans would be provided to these units to get them up and running.
The administrative control of BBUNL subsidiaries — Burn Standard Company Ltd (BSCL) and Braithwaite & Co Ltd — will be transferred to the Steel Authority of India (SAIL) along with a refractory unit at Salem, Tamil Nadu, the government said after the cabinet meeting.
Another subsidiary Braithwaite, Burn and Jessop Construction Co. Ltd will be merged with BBUNL.
The Railways will get control of wagon-making companies of Burn Standard and Braithwaite & Co and make these financially viable again.
“This involves an expenditure of Rs.1,139.16 crore as non-financial assistance by waiving off Government of India’s loan and interest to Burn Standard Company and financial assistance of Rs.14.15 crore to the Burn Standard Company,” an official statement said.
“Upon transfer to SAIL, the Salem refractory unit of Burn Standard Company unit will have access to funds for modernization and capacity expansion,” said the statement.
“Burn Standard has 1418 employees and Braithwaite and Co has 459 employees. Improvement of the financial performance of these companies will improve the compensation to the workmen and contribute to c development of the areas where these units are located in West Bengal and Tamil Nadu,” the statement said.
Both the states are going to the polls next year.
- Mamata gives orders to two sick wagons units - Jun 29, 2010
- SAIL to invest Rs.21,000 crore in West Bengal - May 25, 2012
- Tata steel sells majority stake in refractory unit - Apr 21, 2011
- Ruia Group may acquire European auto-component company - Jul 15, 2010
- Techincal problems continue to dog Neyveli lignite unit - Apr 10, 2012
- SAIL net profit up 98.6 percent - Jan 27, 2010
- SAIL pays government Rs.425.36 crore interim dividend (With Image) - Apr 03, 2012
- Burn Standard upbeat on takeover proposal by Railways - Jul 03, 2009
- SAIL and RITES to jointly manufacture railway wagons - Sep 14, 2010
- SAIL investing Rs.20,000 crore for modernising Bengal units - Sep 10, 2011
- SAIL starts revival of its Jagdishpur unit - Jul 26, 2010
- Production at SAIL's Bhilai Steel Plant dips - Apr 10, 2012
- Proposal for revival of Burn Standard, Braithwaite Company - Mar 02, 2010
- CBI searches: Jindal Group denies wrongdoing - May 16, 2012
- Rourkela Steel records best January production - Feb 02, 2012
Tags: administrative control, bhari, braithwaite, c development, capacity expansion, company ltd, construction co, crore, financial assistance, financial performance, financial restructuring, government of india, jessop, nigam ltd, railways, rs 1, sick units, steel authority, west bengal, workmen