Burn Standard Co Ltd (BSCL) moved one ahead towards its liquidation process with the Appellate Authority for Financial Reconstruction (AAFR) turning down the appeal of the Joint Co-ordination Committee for Trade Union and Associations.
The appeal had challenged a Board for Industrial Financial and Reconstruction (BIFR) ruling in October recommending liquidation.
The AAFR ruled that there is a provision for the government to once again apply for a stake in the tender since it was still open, but it had to be a modified proposal.
In fact, the bench also advised the unions to apply for a stake in the company if they were interested in running the company.
Further, the unions alleged that the government was not writing off some odd Rs 278 crore debt that BIFR had directed. The AAFR ruled that this was the promoters prerogative. The authority refused to admit the case for further hearing. Union officials said now that the appeal had been turned down, they would move court.
Meanwhile, a fresh round of voluntary retirement scheme (VRS) is on the anvil at BSCL. Company sources said: "We are expecting a VRS any moment now." The cost of the VRS is expected at Rs 150 crore which will be financed by financial institutions at an interest of 14 per cent, and will be backed by the government.
Meanwhile, the tender floated by the Industrial Investment Bank of India for a joint venture participation in BSCL has not attracted any response till date. The tender will be open for another few weeks.
BSCL has received fresh orders for another 233 wagons. However, salaries of most of the units at BSCL are due. Employees at Howrah have not received any salary for the last five months, while head office and central project division staff are without salary for four months and staff at Burnpur for three months.
