Working on the revival package for Kolkata-based Burn Standard & Company, which is under the Board for Industrial and Financial Reconstruction (BIFR), the Board for Reconstruction of Public Sector Enterprises (BRPSE) is mulling to ask the Railway ministry and the Steel Authority of India (SAIL) to take over its two wagon manufacturing units and one refractory unit, respectively.
Nitish Sengupta, chairman of the BRPSE, who met Burn Standard officials here today, said that the board will now see if there was any legal snag that could stall the process of a take-over of the units. Burn Standard had two wagon manufacturing facilities, one at Howrah and another at Burnpur in Burdwan district of West Bengal. Its refractory unit was located at Salem in Tamil Nadu.
"The interest amount on the loans taken by the company is very high. It could be to the tune of Rs 150 crore," Sengupta said.
"We do not want to shut down or give grants to sick PSEs. Instead, companies should either look at tying up with a private partner or listing at the bourses wherever possible," he added.
