The Hindu Business Line : Closure notice to Sarvaraya Textiles

THE Board of Industrial and Financial Reconstruction (BIFR) has served a show-cause notice on the Sarvaraya Textiles Mills Ltd here, stating that the mill will be ordered to be closed down, if a rehabilitation package either by the present management or a new promoter is not submitted to it before August 18.

The sick mill had been referred to the BIFR in 1997, but till now no final decision could be taken on it.

According to Mr B. Appala Naidu, the President of the Sarvaraya National Mill Workers' Union, the BIFR had also sent a copy of the notice to the union stating that the unit could be revived by the workers, if they could form into a society under the Industrial Co-operative Society Act. He said a lockout had been declared following the management failure to deposit provident fund and ESI amounts and its failure to pay the statutory minimum bonus for three years. The dues to the workers at present amounted to Rs 5 crore, he said.

He urged the State Government to help the workers in forming into a registered industrial co-operative society and reviving the unit. The union had been asked to submit its proposal by July 15, he said and urged the Government to act immediately.

He said the present management held only 40.87 per cent of the equity and the rest was in the hands of the financial institutions, mutual funds and the public. Therefore, the unit should not be allowed to die.

More Stories on : Sick Units | Textiles | Andhra Pradesh

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page