BIFR SEEKS STATE ASSURANCE FOR SUPPORT TO MYSORE LAMPS
Article Abstract:
Karnataka Government has been asked by the Board of Industrial and Financial Reconstruction (BIFR) to give an assurance that it will continue to be promoters of the sick Mysore Lamp Works Ltd (MLWL) till the company is completely rehabilitated. The Board has given time till end of January, 1999 to the State Government to commit itself. It has also told the State Government to submit a fresh rehabilitation proposal with finances to implement it. The draft rehabilitation scheme for MLWL had proposed cut in workforce, restructuring of business and leasing out of glass shell plant. The cost of the scheme was put at Rs26.17 crore, which included Rs7.88 crore for retrenchment compensation, Rs1.17 crore for payment of deferred provident fund, Rs97 lakh margin money and Rs16.18 crore provision for future cash losses. To meet the expenditure the State Government had proposed to contribute Rs15.68 crore, provide Rs1.26 crore as funding of interest and sales tax deferment amounting to Rs5.5 crore. The BIFR directed the Karnataka Government to discuss the voluntary retirement scheme and other issues with the officers and employees' associations to come to an agreed settlement. (psr)
Comment:
Karnataka Government has been asked by the Board of Industrial and Financial Reconstruction (BIFR) to give an assurance that it will continue to be promoters of the sick Mysore Lamp Works Ltd (MLWL) till the company is completely rehabilitated.
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1999
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KARNATAKA REJECTS REVIVAL PACKAGE FOR MYSORE LAMP
Article Abstract:
The Government of Karnataka has rejected the revival plan of Mysore Lamp Works Ltd (MLWL), a producer of electric lamps, fluorescent tubes and mercury vapour lamps. The Rs26.17 crore revival plan was evolved by the Industrial Development Bank of India (IDBI), the operating agency for the revival plan. The revival plan consisted of a Rs15 crore worth revival scheme and other reliefs and concessions. The Karnataka Government plans to guarantee a Rs14 crore loan and defer commercial taxes. This will be offered if the IDBI and other funding agencies agree to convert loans and interest dues of Rs10.83 crore till September 30, 1998. MLW has an accumulated loss of more than Rs32 crore. The Government will also provide interest-free loans to MLWL and will agree to the conversion of the accumulated interest dues on loans into equity. (ag)
Comment:
Govt of Karnataka rejects company's revival plan, which has been made by Industrial Development Bank of India
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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BIFR SETS DEADLINE FOR REVIVAL OF MYSORE LAMPS
Article Abstract:
The Board for Industrial and Financial Reconstruction (BIFR) has set a deadline of August 31, 1998 for the revival of Mysore Lamp Works Limited (MLWL). The Karnataka government which is the major shareholder in MLWL either has to offload its stake or prepare a fresh revival proposal within the stipulated date. The recently proposed revival plan of MLWL envisages waiving of sales tax till 2002 AD and a state government funded voluntary retirement scheme. The operating agency Industrial Development Bank of India (IDBI) has provided Rs6 crore and KSIDC has brought in Rs1.2 crore as term loan for the revival of the company. In 1997-98, the company recorded turnover of Rs60 crore and net loss of Rs13.5 crore. (gsh)
Comment:
Receives Rs6 Crore from Industrial Development Bank of India & Rs1.2 Crore from KSIDC as term loan for its revival
Publication Name: Economic Times
Subject: Business, international
ISSN: 0013-0389
Year: 1998
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