ManagementGovt to transfer mgmt control of 3 sick units to RINL
In its efforts to revive ailing public sector units under the steel ministry, the government today decided to hand over management control of three sick units to steel major Rashtriya Ispat Nigam (RINL).
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It also decided to wind up operations of Karanpura Development Co and Scott & Saxyby.
The five ailing firms -- Orissa Mineral Development Corporation (OMDC), Bisra Stone Lime Co (BSLC), Karanpura Development Co (KDCL), Scott & Saxyby (SSL), Eastern Investments (EIL) -- are known as Bird Group of Companies.
The management control of Orissa Mineral Development Corporation, Bisra Stone Lime Co and Eastern Investments would be given to RINL.
Announcing the Cabinet decision, Information and Broadcasting Minister Ambika Soni said that the restructuring proposal envisages vesting management control of the three firms with RINL in a subsidiary-cum-holding structure in order to make these companies economically viable and sustainable.
"The government loan and accrued interest thereon would be waived off. The commercially unviable companies would be wound up and their employees would be adjusted in other sister companies under the group or would be offered VRS," Soni said.
The restructuring proposal includes converting Orissa Mineral Development Corp and BSLC into arms of Eastern Investments. EIL would be made a subsidiary of RINL.