The Hindu Business Line : SBI Caps submits report on Hind Coir privatisation

SBI Caps, which had been approached by the Coir Board to prepare a methodology for privatising the public sector Hindustan Coir at Kalavoor near Kerala's Alapuzha district, has submitted a proposal to the Board.

The Board has sent the proposal to the Union Ministry of Agro and Rural industry and its response is awaited, according to Mr Christy Fernandez, Chairman, Coir Board.

He told Business Line on Thursday that "a transparent process of privatisation of the production facility and direct marketing without adversely affecting the interests of the employees would be initiated.''

Competitive bids would be invited once the Government approves the proposal. Discussions would also be held specifically on how the employees in the board's factory could be protected.

Based on the recommendations of the Expenditure Reforms Commission, the Union Government had directed the Coir Board that it should "withdraw from direct marketing and direct production activities'', he said.

Keeping in mind these recommendations the board was undertaking a restructuring programme, details of which were being worked out. As part of this, the main principle would be to restructure the board and redeploying the existing staff.

As a first step the board would have to identify the surplus staff and the process was under way, he said.

Under the process of restructuring, the board might have to privatise its marketing network (showrooms) in various parts of the country, except those in the metros, he said.

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