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As part of the revival plan for the sick Hindustan Photo Films Ltd, the Board for Reconstruction of Public Sector Enterprises (BRPSE) has recommended the Union government to sell the former's lands in Tamil Nadu to settle the dues of banks and FIIs. It also suggested returning some of the lands to the state government.
Tamil Nadu-based Hindustan Photo Films Ltd, set up in 1960, employed over 714 people as on March 31, 2012, and was declared sick by the Board for Industrial and Financial Reconstruction (BIFR) in 1996. The government in 2012, said it was allotted Rs 9 crore for R&D, as part of its revival package.
The BRPSE in its meeting held on June 28, 2013, discussed various aspects of the status of revival and suggested a few measures, said Praful Patel, Minister of Heavy Industries & Public Enterprises.
These include implementation of voluntary retirement service (VRS) on the basis of notional pay scales of 2007 without any arrears to all employees.
"As recommended by BRPSE, an enhanced VRS package for the employees is being worked out," he said. Further, the government should infuse required funds either in the form of equity or loan in escrow account or otherwise for implementation of VRS. However, necessary exemption from the Department of Public Enterprise guidelines could be accorded.
The company has two manufacturing plants - the main factory at Ootacamund, Nilgiris, and a plant at Ambattur near Chennai.
The board said, if any other government organisation, say the Ordnance Factory Board, wants to use the company's land, then it should be allowed. In case, the government wants to utilise the available land for any other use like setting up of a hotel, that should also be permitted.
HPFL was established with the objective of ensuring regular supply of raw cine films to the motion picture industry, X-ray films for health services and Defence forces and special photographic materials for photographers. It was the only integrated manufacturer in the whole of Southeast Asia and had the technology for the manufacture of medical X-ray, graphic arts and black and white products of international standards.
According to the company's auditors report for 2009-10, which is the latest available, the secured A-Series bonds and secured loans amount to Rs 5,561.29 crore (including interest). "Of this total amount, only Rs 544.34 crore has been secured by fixed and current assets. The classification of the balance of Rs 5,016.95 crore as secured in our opinion is not correct," it said. Accumulated losses as on March 31, 2010, stood at Rs 7,056.39 crore as against the net-owned shareholders' funds of Rs 227.98 crore.
In a reply to the Lok Sabha, Patel said the net loss in 2011-12 (till Feb 2012) was Rs 1,209.77 crore as against Rs 1,156.65 crore (in 2010-11), Rs 1,009.21 crore (2009-10) and Rs 890.26 crore (in 2008-09).
