New Delhi: The government on Friday approved a revival plan of textiles firm British India Corporation and cleared proposal for release of salary, wages and other expenses for the 2012-13 fiscal.

The decision includes permission to undertake expenditure for payment of salary, wages, statutory dues and other dues for 2012-13 and grant of Rs 17.10 crore for introduction of voluntary retirement scheme (VRS) to the surplus workforce of the company, an official release said.

This would reduce the payment of idle wages, it added.

The approval has been granted pending permissions from the Uttar Pradesh government, the release said. The company is Kanpur-based.

Also, repayment of interest-free bridge loan of Rs 11.50 crore for interest liability to the State Bank of India has been approved.

"This would unencumber the properties of BIC. Consequently, the sale of surplus freehold land at Dhariwal could commence at the earliest and the funds realised from the sale can be utilised for revival of the unit of BIC at
Dhariwal," the statement said.

It added that the payment of balance conversion charges as may be finally assessed and intimated by the Uttar Pradesh government, after the demand for the balance conversion charges is received.

Tentatively, the charges on this count will be Rs 23.19 crore only. Action for conversion of lease hold into freehold has been initiated already and the initial fee for conversion paid.

The government has also granted ex-post facto approval for certain expenditure on conversion charges, salary/wages for the period from April 2011 to March 2012, refund of National Textiles Corporation bridge loan.

In June 2011, the Cabinet had given in-principle approval to the revival plan of British India subject to obtaining of requisite approvals from the Uttar Pradesh government for sale of land.


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