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Titagarh Paper out of BIFR purview

Richa Mishra

NEW DELHI, Nov. 22

TITAGARH Paper Mills Ltd (TPML), which was merged with Titagarh Steels Ltd (TSL) and is now known as Titagarh Industries Ltd (TIL), is no longer a sick company and can be considered for deregistration from the purview of the Board for Industrial and Fina ncial Reconstruction (BIFR) on fulfilling certain obligations. This was stated by a two-member Bench of BIFR through a recent order.

After hearing the submissions, the Bench observed that TPML, after its merger with TSL (now TIL), has complied with the major financial obligations and has cleared the principal dues of the financial institutions (FIs) and banks.

Only the interest part of the delayed one-time settlement (OTS) payments and protection expenses remain to be cleared, the Bench said. Further, the dues of the retrenched workmen are also stated to have been cleared, it said.

``The Board, therefore, came to the prima facie conclusion that TPML, after its merger with TSL, was no longer a sick company and could be considered for discharge from the purview of BIFR, subject to fulfillment of certain remaining obligations under th e sanctioned scheme''.

Taking note of the submissions made by the secured and unsecured creditors, the Bench directed TIL to clear all the remaining unpaid dues of FIs and banks as well as ESI/provident fund and other dues of the workers, if any, and report compliance within a stipulated time.

TIL had also been directed to ensure restarting of the paper mill numbers one and two, now lying closed, within six months' time (from August 25, 2000) and report to the Board on the expiry of the period.

Further, the Income-Tax certificates under Section 72(A) for 1998-99 may be issued by the Bench after due examination separately, subject to the compliance of the orders.

The Bench recalled that this was the first case registered with BIFR in 1987. The initial scheme sanctioned in 1990 was subsequently modified in 1994.