New Delhi, Oct 11 (UNI) The Union Cabinet today approved the closing down of public sector Bharat Yantra Nigam Limited (BYNL), Allahabad, to enable its six subsidiaries to have an independent status.
''Each subsidiary will now become a separate central public sector enterprise (CPSE),'' Information and Broadcasting Minister Priya Ranjan Dasmunsi told reporters after the Cabinet meeting.
''The decision will help the subsidiaries to improve their performance and profitibility,'' he said.
The six subsidiary companies are: Bharat Heavy Plate and Vessels Limited, Visakhapatnam; Bharat Pumps and Compressors Limited, Naini; Bridge and Roof Company India Limited, Kolkata; Richardson and Cruddas Limited, Mumbai; Triveni Structurals Limited, Naini; and Tungabhadra Steel Products Limited (TSPL), Karnataka.
A budgetary support of Rs 3.82 crore will be given for the closure of BYNL.
Government loan of Rs 1.10 crore of BYNL as on the cut-off date of March 31, 2007 has been waived.
Also waived is the interest of Rs 4.14 crore accrued on Government loan as on March 31, and any addition up to the date of closure.
The Cabinet also approved writing down of the share capital of BYNL to the tune of Rs 2.31 crore, transfer of the assets and liabilities of the company among the subsidiaries, and transfer of shares held by BYNL in subsidiaries to the Government.
A voluntary retirement scheme will be launched to enable the employee desirous of opting for an early separation before closure of the company, Mr Dasmunsi said.