Tyre Corporation's revamp plan cleared

The Board for Reconstruction of Public Sector Enterprises (BRPSE) has cleared a proposal for converting a Rs 202 crore loan of the ailing Tyre Corporation of India (TCIL) into equity and waiving of Rs 348 crore outstanding interest.

The financial restructuring will, however, be implemented only after TCIL finds a joint venture partner.

"We have instructed the ministry of heavy industry and public enterprises to look for a suitable joint venture partner for TCIL in the public sector, failing which it can also opt for a partner from the private sector," BRPSE chairman P K Basu said.

"The company has been without a chairman for the last 6 years, still it has been making operating profit. We are hopeful that its fortune can be revived," Basu said.

Even though the board had asked the heavy industry ministry on February 17 this year to fill up the posts of chairman, director (finance) and director (operations) by March 31, the posts are still lying vacant.

The board has also prescribed a capital infusion of Rs 25 crore and a waiving of Rs 25 crore penal interest, charged at 18 per cent per annum, for Bharat Wagon and Engineering Co. It also given a go-ahead for converting government loan of Rs 55 crore into equity.

The board has advised the ministry of heavy industries to ascertain a company from the public sector or other interested parties to take over or to form a joint venture with the ailing Tungabhadra Steel Products.

Further, the BRPSE has directed the chairmen of Bharat Bhari Udyog Nigam and Hindustan paper Corporation to prepare detailed revival proposals within a month.

Basu said railways had confirmed that there would be no dearth of wagon orders for Bharat Wagon. The company, which needs to make 50 wagons a month for achieving break-even, has witnessed improvement in its performance during the last three months, Basu added.